believe the market is ready, and almost begging for QE3 and some action out of Europe and that is why the market has been bouncing of a technical support level. Just as things seem to be on the verge of getting bad. The central banks are in prevention mode of keeping Europe and the rest of the global markets from falling into the financial abyss. I am glad that they are I certainly do not want to see as bad a crisis as the U.S. went through in 2008.
S&P Moves on Drahgi Comments. But Nothing Has Changed
S&P 500 Market Review Bearish Flag on the Weekly Chart
Two forces are going to influence whether the bears or the bulls control the market in the next couple of weeks. Easy money or bad economic conditions.
We have seen in the past that markets respond well when central banks lower interest rates or introduce quantitative easing. It seems to me that the institutional managers and big trading outfits want a QE3 in order for them to buy in, but conditions have not prompted Ben Bernanke to consider another round of QE.
Trade It Like A Pro: Stock Market Analysis For Today
Whipsaw Action: Trading The Markets For Profit Today
Divergences Appear: May Signal ECB Stimulus Coming Shortly
The market is showing positive divergences in two major areas. These areas signal stimulus and possible bank recapitalization from the European Union and the ECB. Ultimately, the markets are signaling something big on the horizon that could cause the market to pop sharply in the short run.