13 December 2013

SP 500 and NDX Futures Daily Charts - The Pause that Refreshes Before FOMC Next Week

Stocks were treading water this week ahead of the FOMC decision next week.

I think that even though there may be more taper talk that the Fed will not doing anything substantial.

Even if they do taper, we have to keep in mind that this is a cutback on the 80+ billion in monthly liquidity the Fed injects into the financial system by buying Treasuries and Mortgage debt.

But I do think that the discussion about what they will do will be about as substantial as what they actually end up doing which is pretty much nothing.

Have a pleasant weekend.