The major averages lost ground after the FOMC statement failed to meet investor hopes for additional stimulus measures. The Fed said it will expand its "Operation Twist" program and said it is prepared to take further action if needed. Investors also focused on Chairman Bernanke's press conference at 2:15PM ET as he addressed the central bank's assessment of the economy. The Fed's forecasts put a damper on investor sentiment after it projected weaker growth, higher unemployment and softer inflation over the next few years.

With focus on the Fed, economic data was overlooked as mortgage applications declined last week after the biggest increase since November 2010 in the prior reading. On the upside, Greek political parties agreed to form a coalition government that will seek relief from austerity measures, which helped ease fears that it may exit the euro. There was also a report that Germany's Chancellor said bond purchases by the EU bailout fund were a possibility.

Adobe Systems Inc (ADBE -2.71%) fell even after its earnings narrowly beat expectations. Profit tallies will remain in focus, and after Wednesday's close reports were due out from Bed Bath & Beyond Inc (BBBY -1.41%) and Red Hat Inc (RHT -0.74%).

Commodities were under pressure, with copper falling for the first time in six sessions, and crude oil also fell after the Energy Department said U.S. crude stockpiles rose to the highest level in almost 22 years.

In bondland, Treasuries finished mixed with the 10-year note down 9/32 to yield 1.65% and the 30-year bond gained 7/32 to yield 2.72%.

Technically, the major averages (M criteria) have confirmed a new rally attempt and fact-based investors may carefully begin with new buying efforts strictly in sound buy candidates near proper entry points. As always, disciplined investors limit losses if any stock ever falls more than -7% from its purchase price. 

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PICTURED: The Nasdaq Composite Index rallied above its downward sloping 50-day moving average (DMA) line this week, helping its technical stance. Progress above that important short-term average by all 3 major averages this week has been noted as a reassuring sign for the current rally.