SP Futures Hourly Chart at 3 PM

Market volumes are still thin, and driven heavily by momentum traders and Wall Street wiseguys setting up the small specs, looking into what they holding, and then raising them out of their seats on short term spikes and drops.

Today was likely a bit of a letdown on the Fed news, that is, profit-taking, but the dips *should* continue to get bought once the funds sell off dogs into the monthly and quarter close and start window dressing which will likely begin Friday or Monday.

If any exogenous event occurs this market could drop hard and fast because it is all froth, and little conviction. Third quarter earnings *could* look good by comparison, but we have it in the back of our minds that October may be bloody.

Bernanke is disgraceful in his stewardship of the financial system, although it could be argued that he is doing his part, raising liquidity, but Obama and his crew are failing in their task of reforming the system and helping to direct that liquidity into fruitful efforts, rather than bonuses to their patrons on Wall Street.