Written in a central banks mandate is to preserve the integrity of the the financial system in the wake of a financial crisis. This is nothing new, Ben Bernanke made statements like this before and so have other central bankers. However, the problem is not a monetary issue, it is a fiscal issue, and it is not gettting better. Words alone were able to move the market higher today, but words like this are not specific enough to get policy makers to change the way do things in their particular governments, especially in Europe.
The same problem exists today in Europe as it did 2 years ago, and has been an ongoing problem. The markets are still concerned with what happens if Spain needs a bail out, or even worse Italy or both. To bail out two countries with the magnitude of problems they have would easily cripple Europe.
The technicals on the SPY are such that the close today above $136 is a sign of a reversal. If the price action was larger today combined with a spike over average volume, I would be a little more optimistic. The neutral candlestick says that there is not enough institutional participation and today's rally met the underside of the broken trend-line which could begin to form resistance.
There may be a small wave of buying, if tomorrow we see a small up tick but a close on the low's of the day, I would be encouraged that market going into next week might begin to weaken and things get more bearish.
Remember trade what the technicals are saying.
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