Stock Market Technical Analysis Blog
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In the market today we had the slightly downward consolidation that was expected but in the early afternoon we got the unexpected when the Fed minutes were released. The market has priced in "QE to infinity" as it was called after the last meeting but abruptly found out that several of the Fed members are saying they want to end the QE program this year. Seconds after the release the market dropped sharply as participants realized that we may now have to price in QE ending by December which means the market direction may turn to the downside. Counting on the first five days push to continue is like rolling the dice now. I mentioned last night that this market wakes up in a different world every couple of days and tomorrow it will for sure as the media will probably start discussions on how we now have the countdown to the end of the QE program which is 100% responsible for the market being as high as it is. It will be a one day at a time market now, the end of the QE program will be a very serious event.