U.S. Stocks Finish Strong; S&P Establishes New Support
U.S. equity markets rallied sharply overnight, hemmed and hawed about mid-session then took off higher into the close. The catalyst behind this rally was the fresh liquidity being provided by the U.S. Federal Reserve. Once again Europe and Asia had the jump on U.S. traders who bought into the bullish news but quickly backed off when prices got too lofty.
New Fed Money Drives Stocks, Precious Metals Higher
Stocks Could Move Higher; Gold Indicates Uncertainty
The rebound in the U.S. equity markets indicates that stocks are poised to move higher. Although the Fed told us nothing that wasn’t already built into the market, the fact that more liquidity was made available shouldn’t hurt equity prices. Stocks could also benefit from an improving economy especially if Friday’s U.S. employment data comes out better than expected.
Yesterday’s U.S. mid-term elections do not seem to have had too much of an influence on the value of the Dollar as traders have quickly shifted their focus to today’s Federal Reserve monetary policy meeting.
There is no question the Federal Open Market Committee is poised to implement a new quantitative easing program. The questions over the past two weeks have been how, and how much?
Equity Markets Called Higher Underpinned by Election
Aggressive speculators drove December Silver to a fresh high for the year ahead of this week’s elections and Fed meeting. Traders seem to be increasing positions in anticipation of a Republican victory and new Fed quantitative easing. Some traders are on the sidelines this morning, creating volatile swings on thin volume.