What the Fed did last Thursday is likely going to take a few more days to fully understand. Odds are it is likely going to put a bid into markets. But the Fed launched this program when markets were already way overbought and lacking any real short interest.
So similar to how you let the first 30 minutes of trading open and settle down, we may need a few more days to understand just how effective this program will be. If markets had sold off prior to the launch of QE3 and had not shown such signs of exhaustion the weeks leading up to it, the rally likely would not falter today. But falter it did. But as discussed below, market psychology, inspired by Bernanke is likely going to be a very strong tailwind.