While disappointment from the FOMC's comments tomorrow may not be enough to create 'the big one', it is perhaps worth a look at the more meaningful corrections over the last 10 years in equity and credit markets for some sense of context for what is possible. So far, it is clear, especially given today's equity rally (and ongoing credit weakness) that the consensus of the equity herd are not expecting disappointment tomorrow - while credit markets are preparing for the 'flow' to slow.
Credit markets are well on their way to a 'normal' correction...
[3]
But stocks remain notably confident relative to previous corrections...
[4]
and the divergence is becoming clearer...
[5]
and continues today...
[6]
Charts: Morgan Stanley