Market Review: Markets Dips on QE3 Effectivness Concerns

Today the market reacted to a statement form the Philly Fed President Charles Plosser.  Where in his opinion the effectiveness of QE3 on unemployment will be practically nill.  That the course the Fed is pursuing (monetary easing) is not a way that can solve structural economic problems like unemployment.  Whether he is wrong or right the market certainly did not like this, which actually may be a positive for the market.  We are getting a release valve so to speak, releasing some of the pressure on the up trend so that an opportunity to buy on the dip has presented itself.

The last 3 months as this trend has been building momentum it has been using the 20 day EMA (exponential moving average) as a moving support line.  The key as with any pull back is that we don't break any key support levels.  So look and watch  $143 on the SPY it represents the short term support level and maybe even more important is $141 that broke the SPY out to new high's.  Significant breaks in these levels will most likely shift the up ward momentum the other way.

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