Tales of Two Economies, Stocks, and Markets

Stock market fundamentals got even more confusing today.

Economy
Fed puzzled the traders by pulling Twist extension, but Bernanke's entire press conference emphasis was on "exceptionally low levels for the federal funds rate at least through late 2014". I can sum up his comments for you in my own words - we can't see through walls which we can't see in front of us.
10-yr t-note yield ended the day below 2%. Enough said...

Stocks
Very interesting divergence is depicted in AAPL vs CAT. I think that details of two companies' quarterly reports confirm that Chinese economy is now moving from industrial to consumer based. Market recognizes the consequences of shifts like that. Thus, commodities, industrials, basic materials, energies, and transports will probably have to cool off for a bit more, as the technologies may shine.

Markets
Hence, my view on markets is the following: there may be a continued SPX underperformance vs NDX. And that makes me very worried...