Wednesday, January 25, 2012

SPX is at resistance

Fed has given the "risk on" trade a green light today. Rates are to stay low forever...

I am not bullish though, due to Fed's downbeat outlook on U.S. economy. Why should one be buying S&P 500, which is already up 5.5% YTD, when in today's statement FOMC said: "growth in business fixed investment has slowed, and the housing sector remains depressed"?

click on chart to enlarge

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