Stocks are coming off a terrible Friday where all major indices lost between 2 and 3% of their value on heavy volume. What does the week ahead have in store for the stock market? Yahoo Finance does a weekly Economic Calendar which shows the important economic events of each week, and this week is light except for the FOMC policy statement Tuesday afternoon. The story of the week certainly is the Federal Reserve Open Market Committee meeting and the ensuing statement to be released on Tuesday at 2:15. Quite honestly, the statement from the Fed is much more important to the stock market this week than it usually is, and it always is very important. 
The market is looking for direction from the FOMC, and Tuesday afternoon will largely decide how this week goes for all the major averages. If the FOMC doesn't change anything in their statement and make it seem like they are out of touch with recent problems in the fixed-income market traders are likely to react negatively. If the FOMC changes their policy stance toward a possible future tightening the bulls could be out in full force the rest of the week.
Stocks are currently in a calendar period (August and September), which has never proved to be particularly positive. I will be waiting on the sidelines, making some lists of companies that are beginning to look beaten down in their value through the recent selloff. Sometime in the next few weeks there may be a good time to buy some quality names. For now, I will be watching and waiting, intently tuned in to what the FOMC has to say Tuesday at 2:15.
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