Equities tried to rebound on Wednesday ahead of the Fed meeting but the move didn't get very far. The gains were capped by the FOMC statement and press conference in which Fed Chief Jerome Powell indicated rate hikes would begin very soon. The market took the news to mean the first rate hike will come in March and that it might be larger than previously estimated. The CME's Fedwatch Tool shows a 100% chance of rate hike in March with a growing chance of two 25 basis point hikes at once.

Turning to the indices, the S&P 500 fell almost a full percentage point at the low of the session after climbing the same amount earlier in the day. The move confirms resistance at the key 200-day moving average and at a lower level than previous support. This is evidence of increasing bearish momentum and could lead the market down another 5% to 10% with ease.