Stocks rallied after the Fed announced plans to taper QE3 by $10 billion per month, but a day later the exuberance is gone.

The Nasdaq and S&P 500 were both down slightly as of 3 p.m. ET Thursday and the Dow was looking at a 1.8% gain. The HW 30 was up a hair -- .01%.

All in all, it looks like investors aren’t sure that the market is ready to see a smaller safety net. And for hawks who wanted more of a taper, they weren’t thrilled by Ben Bernake’s warning that the Fed could crank QE back up at the first sign of trouble.

It was a far cry from closing Wednesday when stocks surged to close at record highs. The Dow gained 292.71 points, or 1.8% yesterday, and the S&P 500 jumped 29.65 points, or 1.7%.

Bonds sold off Wednesday with the yield ending the day at 2.89%. The HW 30 – the HousingWire index of stocks impacting housing finance — rose 2.84%.

In other news, it looks like the market wasn’t thrilled with Impac Mortgage Holdings’ (IMH) announcement that the company is closing 23 locations and laying off 180 employees in a move to focus more on its online business.

Impac was trading at $6.20 as of 3:15 p.m. ET, down 6.37%.