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Escher's Market

Stocks regained their footing this week, gaining 1% back of the 2% they shed the week before. It was a defensive bounce as utilities led the way with a 2.9% rise and basic materials fell the worst, 1.7%. Once again, the market mover was the Fed, which confirmed that they had no immediate plans to stop the QE. Investors also digested the revision of Q1 GDP to a rise of 1.8% down from 2.4%. They interpreted this as another reason for Bernanke to continue QE, hence in Escher's market bad news was good news. The return of positive money flow to the market was not missed by the ISOS marker which moved from neutral to bullish.