Hot Rolled Futures: Start the Easing of the Easing

Financial Markets:

Well two weeks back the S+P held that 1775 zone it tested. It has since rallied back to new highs yesterday at 1806.75, this for the March future. Yesterday the Fed announced the beginning of the easing of the easing, or bond buyback program. The Fed will start to taper their bond buying program by $10 bln/month starting in January. The market took the news in stride, which was well expected and speculated, and the S+P rallied 31 points (300 plus in DOW speak) to 1804.75.  Hard to understand how markets react to news such as this. I think the only thing that can be drawn from the reaction is that there clearly were some in the markets who had been fearing a more hawkish move. So, the market is breathing a sigh of relief that it can get back to doing what it is good at, going up. 1825 is the next target for resistance. Below 1775-80 zone needs to hold up otherwise we will, dare say it, be headed into a retracement.