Friday November 15, 2013 08:26
The bulls got what they wanted yesterday with Madame Yellen confirming the continuation of the Fed’s bond buying program for the foreseeable future. I continue to be somewhat disappointed with the momentum and was looking for a surge and break through $1,292 to create a short term impulse leg. It hit the level three times yesterday and failed, which creates a caution flag. I have not thrown in the towel, primarily because of the current “politic speak” in DC. Everyone is focused on ObamaCare and no one is speaking to the issues a mere 60 days away. The health care issues have given Republicans new hope and possibly a stronger hand to negotiate the debt ceiling issues that are looming. I can’t discount another drop in this market, especially if we lose the $1267 level, but would caution that this market has significant upside potential, if the fear trade reestablishes.