The dollar initially rose and stocks dumped, in sympathy with global stocks overnight action, especially the emerging markets.
But at some point Wall Street decided it was all good, and the word went from desk to desk that 'the Fed's got our backs, come what may. So don't ask why, just buy!'
And so US stocks climbed for the rest of the day on slow but steady buying, and after initially being slammed hard lower, gold recovered, as did silver, which managed to hold on to the 15 handle.
Speaking of handles, gold is now doing what I wanted to see in terms of setting a proper handle for the potential 'cup and handle' formation.
Look carefully at the gold chart below, and the way in which the price is moving within the longer term trends. I do not know what is going to happen, but it certain helps to have a well-marked road map.
Stocks are jammed up into some more substantial overhead resistance, and with earnings season coming up, the Fed will have to provide more support than smarmy whispers of easy money for financial assets, and let the real economy fend for itself.
And when this latest bubble, third of this cycle, collapses like the rest, more substantial edifices to greed may fall than just some personal fortunes and pensions.
Have a pleasant weekend.
