We noted a week ago in the Friday recap that the big rally in the face of bad news was potentially quite bullish. This week has confirmed that. The S&P 500 gained 0.07% and the NASDAQ 0.41%. Despite some overbought conditions we are not seeing any real pullback which is also bullish. We had a touch of earnings reports this week but most of the action centered around the theme of the Federal Reserve standing on the sideline for even longer i.e. bad economic news = good market news. The economic data released today was not really market moving so we won’t bother sharing it.
“The FOMC minutes actually shocked a lot of market participants that (policymakers) were a lot further away from raising rates in September than many believed,” said John Caruso, senior market strategist at RJO Futures.Continue reading