S&P 500 pops and drops on mixed sentiment surrounding dovish Fed hike

• Dow Jones Industrial Average lost 530.49 points, or 1.63%, to 32,030.11.
• The S&P 500  dropped 65.9 points, or 1.65%, to 3,936.97.
• Nasdaq Composite slid 190.15 points, or 1.6%, to 11,669.96.

Wall Street ended sharply lower on Wednesday despite the dovish US Federal Reserve that delivered a widely expected 25 basis point policy hike. The Fed also hinted that it was on the verge of pausing future increases in view of the recent turmoil in the financial sector.

The three major US stock indexes, lept higher on dovish language tweaks in the statement and then deflated as investors digested both the accompanying statement and Chair Jerome Powell's subsequent Q&A press conference. 

In the Fed's statement, the members of the Federal Open Markets Committee (FOMC) suggested it was on the verge of pausing future hikes in view of the recent turmoil in the financial sector. however, Jerome Powell vowed to commit to reining in inflation. 

By the closing bell, all three indexes were off more than 1.6% The Dow Jones Industrial Average lost 530.49 points, or 1.63%, to 32,030.11, the S&P 500  dropped 65.9 points, or 1.65%, to 3,936.97 and the Nasdaq Composite slid 190.15 points, or 1.6%, to 11,669.96.

S&P 500 falling wedge

The weekly chart shows the index in a falling wedge scenario, bullish, but the market is on the backside of the bullish trend and the M-formation´s neckline resistance is proving to be a tough nut to crack, so far.