The Fed announcement met positive expectations as far as language, the GDP is strong, and inflation numbers (not just today's CPI) actually look very good. The election in Iraq appears to be going well. But we can't rally. Soon, everyone will be hungover from office parties and uninterested in trading. It looks like we're done for this year.
CPI today was not great, going into holidays new jobs are poor and retail sales fell below expectations. Just want to add that many semi stocks have had poor results with single digit revenue gains, yet have rallied 10% plus since. For the market to really rally it needs to break out of this 11000 with some volume, maybe that is around the corner?
Methinks the grand bazaar of equity exchange beginth to rallyth forthwith. The new royal King hath beenth sanctioned most kindly by his subjects
i was also shocked at a lack of a rally on such good news. i am looking for a continuation of a samller rally in the beginnings of january. after the first couple of weeks, I expect a decline. But right now i am flat. I relly dont understand what is going on at the moment too illogical.
Market's been held down by record trade deficits and record natural gas prices. But i think the good vibes about Fed policy and chairman Bernanke will eventually power through this resistance and the end of year party on Wall Street could start soon. Perhaps even by tomorrow afternoon.. cheers,
I don't think the market is ever illogical -- the market is what it is. Sometimes it just doesn't give clear signals.
I think the bull is over at least for several weeks. Numerous negative divergences have just occured: between NYSE Composite and NYSE A/D line; between the broad market and Broker-Dealer index; finally between major indexes themselves- Dow Jones (say, big guys) failed to confirm new high in SP500...