With today’s Fed announcement came this press release: http://www.federalreserve.gov/newsevents/press/monetary/20111213a.htm
As we now know, the Fed stated that:
]”Information received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth.”
The upshot of their December meeting was that there was no change to their policy from the last meeting.
What I’m hearing again from both the Fed and the ECB are (unspoken but implied) messages to their respective political leaders to find ways to deal with the slowdown in global growth…in other words, to “Get those ducks in order.”The problematic economic ball has been thrown back to the politicians, both in the U.S. and in Europe. And we know how divided those houses are.
With that being said, it’s my humble opinion that, for the next while, the equity markets will continue to trade within their respective ranges that are in play on the Daily chartsbelow of the M, ES, NQ & TF from their August lows to their October highs. I don’t believe that the Fedis going to step in with any kind of QE stimulus as long as these markets trade above their August lows…and possibly even lower…with the caveat that as long as world economic and financial conditions remain at their current levels, i.e. without new financial crises erupting. With today’s higher volume, we’ll see if a market sell-off comes in tomorrow or in the next several days, or whether there is an appetite to add further risk before Christmas which could send these markets above their October highs.
