Market Notes: Is The Rally Running Out Of Steam? -- July 31
Even better than expected GDP numbers and picture-perfect rhetoric out of the Fed couldn't keep the bears from spoiling the bulls' picnic. The first clue that the bulls might be in trouble was the drop in all of the major averages after the opening rally. The second clue was the drop after the Fed interest rate decision and news release saying pretty much exactly what Wall Street wanted to hear: they will begin tapering their bond buying program at some indeterminate time in the future but they won't be raising interest rates anytime soon. If good news can't keep the bears away, imagine the havoc a disappointing jobs number on Friday could wreak. The fact that the S&P cannot make it past 1700 is a sign that the market is tired and may be poised for a sell-off. Judging by the strength of the late-day bear charge, I'd say a correction could begin as early as tomorrow.
Note: My blogs are going to be shorter for the next few weeks as I'm trying to block off some time to finish a book. I figured this would be a good time as many people are on vacation. If you're a subscriber, please don't worry. I will be keeping up the Subscriber Services as usual.
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