There was no volume to yesterday's move, which means it can be easily reversed and reversed it is already this morning as the markets pop 0.4% in the Futures (8:15). As Dave Fry noted: "POMO continues apace and that leads to more dip buying as occurred this afternoon. After all HFT algos understand they still have time to trade before the music stops. Other investors are more cautious."
Although there’s very little positive in economic fundamentals at home and abroad, Sandra Pianalto said in a speech Wednesday: “In light of this progress, and if the labor market remains on the stronger path that it has followed since last fall, then I would be prepared to scale back the monthly pace of asset purchases.” Part-time jobs aren’t the stuff of real employment growth. You can change all the data you want by manipulating collection methodologies for GDP, inflation and now jobs, but in the end conditions are what they are in reality.
As you can see from our Big Chart, we bounced off a few major lines yesterday.
IN PROGRESS
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