Today’s action felt a bit like the old short covering nutcracker, no?
There is scope for further action by the Federal Reserve to ease financial conditions and strengthen the recovery…
Difficult to read the signals of markets addicted to crack. The fix better be good.
Nevertheless, price is king and even though the S&P500 made a short slight trip below 1,400 this morning, that level, along with the 20-day moving average held. The markets want to believe and lacks real selling, in our opinion.
The line in the sand next week is today’s low at 1,398.
Have a great weekend!
(click here if charts are not observable)