Friday's action in the stock market was very bearish as investors rejected Fed Chief Evans' call-in market intervention executed at 10 PM Wednesday night where he put out on the newswires that the Fed may not raise interest rates until 2016. This caused the overnight S&P Futures to explode twenty points higher in about as many minutes which continued into a big gap open Thursday and another Fed induced short squeeze Thursday.
This verbal intervention was almost identical to the mid-October maneuver by Fed Chief Bullard. In both cases their tactical surprise dovish statements sent to the newswires during the thinly traded overnight futures completely reversed the global stock markets and marked the bottom to the very second it came across the newswires. Friday's give back of Thursday's short squeeze was a symbolic statement by investors that such an artificial rally is just not going to cut it anymore. If you were following the Wall Street Journal online Thursday evening in their market data center page, they showed that there was a huge outflow in the SPY money flow reading Thursday as investors sold big into the strength of Thursday's squeeze.
How about something with a little more meat on the bone guys?
Trade well my friends
Alan
