It didn't surprise me to see the markets end down today. After yesterday, that would have been a pretty good bet. I was disappointed to see the slow build up in the morning then moving up over a hundred on the Dow and then collapsing. That doesn't give me the warm and fuzzies that the moves by the Fed on Tuesday are going to be a game changer.
Even though all three momentum indicators that we tout are now headed north again, I am going to remain very cautious. Its probably going to take until sometime next week to really tell if the market likes the Fed action or not. If it does and momentum is building like it is today, then things set up quite nicely. Then again, we could be in the toilet by Friday.
Advice for Thursday is to watch very closely. You never know when those big buy programs are going to kick in, or for that matter the big sell programs. As the little guy we are watching for signs of how the goliaths are battling it out and which one is winning - the Long Dude or the Short Dude. If the market likes the changes that the Fed has introduced it could jump at anytime over the next few days, and just the opposite, of course. So watch closely, and Don't Ask Why.
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