BRIEF BROAD STOCK MARKET UPDATE (5:00 pm EDST)
The broad stock market was spooked today as the minutes from the last Fed meeting were released. They showed Fed officials debating inflation risk as well as discussing the future tapering of current QE policy (oops...I'm not supposed to say "quantitative easing "...sorry about that). The DOW actually made a new weekly low. That low may replace last week's sub-cycle bottom OR it may continue lower into the upcoming reversal zone (May 21 - June 1). All three indices (DOW, S&P 500, NASDAQ) recovered sharply from their early day plunges, however, so we may see them resume their rally from here. If not, we will have to abandon our short-term bullish outlook. Still on the sidelines of this market and waiting for clear signals of an imminent MAJOR downward correction in equities.
The broad stock market was spooked today as the minutes from the last Fed meeting were released. They showed Fed officials debating inflation risk as well as discussing the future tapering of current QE policy (oops...I'm not supposed to say "quantitative easing "...sorry about that). The DOW actually made a new weekly low. That low may replace last week's sub-cycle bottom OR it may continue lower into the upcoming reversal zone (May 21 - June 1). All three indices (DOW, S&P 500, NASDAQ) recovered sharply from their early day plunges, however, so we may see them resume their rally from here. If not, we will have to abandon our short-term bullish outlook. Still on the sidelines of this market and waiting for clear signals of an imminent MAJOR downward correction in equities.
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