The US equity market is working on a little downtrend here, with discouragement coming on the Alcoa earnings announcement, in which the top line of revenues was missed.
The banks start reporting tomorrow, and if even the financial sector disappoints we may see some additional action to the downside. We have not even yet hit the first big 38.2% retracement for this rally yet.
Benny won't be stopping at QE2, although he might throw a little interest rate razzle dazzle our way, raising while maintaining the flow of easy liquidity to the financial sector.
