Janet "Goldilocks" Yellen Spoke

posted Jul 16, 2014, 9:25 AM by Katie Shook

Wednesday July 16, 2014

Yellen spoke.  The markets pulled back slightly.  The speech ended.  The markets recovered (mostly).  Overnight the earnings news was strong.  And up up up go the futures, pushing for another run at all-time highs.

Once again, the Fed has done it’s best to toss a cream puff right over the plate for the markets to swing at.   They see things continuing to gradually improve but don’t want to pull the rug out from this thing.  So, for now, things continue to be ‘just right.’  At least the 10-point implied move by the futures would say so.

Based on short-term charts – and the general psychology of this market – that 2000 number may be too juicy to leave alone this week.  From there, I wouldn't mind seeing a 5% pull-back to ‘normalize’ things and firm up consolidation levels.  It would also be helpful for market psychology to experience a correction.  It would provide an opportunity for buyers on the sidelines to move back into the markets.  As it is, a lot of folks are simply waiting for the next shoe to drop.

Daily Digits

Daily Digits 7/16/14

Weekly Estimated Range

Weeklies 7/16/15

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