The rally today was definitely unexpected, especially since it began in front of the FOMC decision and not afterward. Usually stocks are quiet ahead of a fed decision. The market's are always volatile immediately following a fed meeting and often enough the first post-meeting move in stocks is not necessarily the true move, if that makes sense. Traders were already taking profits in the last 30 to 60 minutes of trading today. The rally in the S&P 500 back above 1,000 is bullish but it could end up being a new, short-term lower high. The NASDAQ's (and NASDAQ-100's) rally was just enough to briefly pierce the recent highs and it rolled over in the last hour. Essentially the NASDAQ is still under resistance in the 2015 region.
I don't trust this move higher but neither do I want to short it. The market is overbought and due for a correction but stocks can always get more overbought. If you forced me to trade I would be looking for bearish candidates and use really tight stops. Instead of adding new candidates tonight I suggest we wait and see if there is any follow through tomorrow. Wal-Mart (WMT) reports earnings tomorrow morning and their comments could have a big affect on the market.