Do Fed Announcements Mark Major Market Tops & Bottoms?

Do Fed announcements mark major market tops and bottoms? The Federal Reserve ($FED) gets a lot of attention. A LOT. Some of it is warranted, and some of it is just media hype. However, I’ve noticed that some Fed announcements have marked major tops and bottoms in the market. Some of the announcements have not been perfect, but some have been right on the dot (almost to the day even). Below is a weekly chart of the SPDR S&P 500 ETF ($SPY) with the major $FED announcements highlighted (like the many quantitative easing programs).

Have the aggressive actions by the Fed caused these markets bottoms and tops? Or has the Fed just been getting lucky/unlucky with the timing?  Personally, I think it’s a mixture of both. What do you think?

$SPY Weekly chart

SPY Fed Tops&Bottoms


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