Prices
May 1, 2014
Hot Rolled Futures: China Meltdown
Written by Andre Marshall
Financial Markets
We are still in the testing of the highs mode, closing in the 1877.50 zone on S+P 500, not much different from a week back. Need to take the out the old high and test 1900 again, otherwise… The Fed tapered on the easing, paring the buying program back $10 bln /month again–think we are down to a $45 bln /month program now with $25 bln going to Treasuries and $20 bln going to Mortgaged backed securities. The stock market has taken the information in stride and returned to prior levels and higher after an initial dip reaction. There is more and more talk of a correction in the markets, which means it probably won’t happen right away, but the bullish reaction to the Fed announcement means the market is still bullish, a key ingredient for a correction.
