Market Review 8/1 No Movement in Fed Statement

I suppose it was not expected that the Fed was going to announce QE3 today, they have continued to recognize in their recent statements that economic activity is slowing, but nothing to prompt them to implement QE3.  The market responded simply by dropping slightly.

The market is really waiting tomorrow for the ECB to act and announce something that is going to backstop the credit concerns in Europe and address the Spain and Italian sovereign debt.  So if you want to hold on to something get a firm grasp. because if the market views the announcement as weak we could see a pronounced sell off and on the other hand, is that the policies are viewed as substantial enough the statement could spark a rally in the world markets.

The market perception needs to be that ECB is acting in an overwhelming and decisive manner and the Euro countries need to be supporting the action 100%

Most of this week the SPY has traded sideways in anticipation for what the Fed might announce, but more on what the ECB will do.  The breakout in the short term range should let us know where the SPY is going in the next week.




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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives