Market Has Rebuilt Bullish Base

Posted by Chris Ciovacco - Financial Sense

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Reaction to Fed Minutes

Sometime between late Wednesday and mid-day Thursday, we should get a read on the market’s true reaction to the minutes from the last Fed gathering. At some point, the market will take a breather for a day or two in the form of a pullback. If the Fed minutes serve as the catalyst, the recently cleared downward-sloping blue trendline below may act as support.


It seems unlikely the markets will swoon for an extended period due to any tapering-related comments in the minutes. From Reuters:

Peter de Bruin, a senior economist at ABN Amro, said he expected the minutes to show a consensus forming at the Fed to start scaling back its $85 billion-a-month stimulus program in September, following a recent pick-up in U.S. data. “I think we have already seen the main fireworks from the Fed’s intentions to taper (scale back stimulus),” de Bruin said. “I would be surprised if we saw another strong rise in yields.”

……read more HERE