I'm hoping the public is smart enough to know
(1) The fed had to say what he did to prop up the dollar the weakness of which is causing our European friends some anxiety. Something had to be done. Baring intervention this tough talk was it. (2) No one is really TALKING ABOUT THIS AT ALL-- and I just realized it myself-- the whole anticipating the upsurge in the economy that was in so many prior reports was it totally absent? I've got to get the full transcript not just the headlines but the VIBE I'm getting in the economy has been a slowdown LARGER that first thought and leading economic indicators are pointing towards that fact.. yet each warning about raising rates was based on this anticipation of a re accelerating economy and in fact that has kept us all in the market investing merrily. accelerating comfy = good stock market environment... or does it?
I'm confused on that fact as well as I'm not getting the feeling the fed is on this same mindset it's all inflation now. Hummm.
At the end of the day the Bulls can say bent but not broken. The SPX challenged the uptrend line and held on to it. For now, the uptrend remains in tact, but I don't think stays that way for long. Wednesday's action puts the SPX right back on the 76% retracement level of the decline, 1439. 1440 has played a pivotal roll since it was first reached in January. The NASD was weak too, but like the S&P 500, it held its defining uptrend line from the March lows. It did fall below 2460 support, but technically, it held the line. On both indices, we were due for a down day and we got one. With the bulls reluctant to throw in the towel, even on a very short-term basis, the potential for downside acceleration remains significant. If the Bears fail to break 2450 and keep it brokenâ¦its just a little overdue pullback. The bears need to break these up trends with some authority to momentarily breach the Bull's confidence.
