Stocks were selling off this morning, but the Fed's Bullard jawboned them off the bottom with the speculation that the Fed might have to extend QE3.
That gave the signal to the market, although what he actually said especially about the price of oil was somewhat contradictory, and did not make all that much sense.
But the Plunge Protection Team, tapping any needed money from the Exchange Stabilization Fund, started buying the SP futures, and continued to do so at a couple of key points in the day, and particularly into the close, with some wild price swings. The SP futures dropped almost 10 into the close off that late day buying pump.
So what next. Really, it's out of the Fed's hands, since the weakness is global. While the Fed could do much more, in particular as a key regulator, I do not think that they will be able to do it, with the kind of craven, financially coddled pampered politicians that are in leadership positions in the West. London and Washington come to mind in particular.
Stocks are at key support here, and the powers that be would like to see a bottom made here quite badly. Tomorrow is key for no further sell off, to give investors doubts and time to think about it over the weekend.
So let's see what happens.
Have a pleasant evening.
