OK, I watched too much Glenn Beck this week but the Fed's after market move made me feel better. I stuck to my guns concerning resistance in the market despite the Nasdaq flipping me the bird earlier in the week. And after I filed my column this afternoon - before the market scooted higher - I still had faith that the market was not looking like it did in July. This was more than just a "healthy correction."
Here is the text that I left on the cutting room floor before submitting the column to my editor. Yes, I am asking you to believe that it was written this morning and not after the Fed's move.
We all know that one day the Fed will wind down its low rate policy but news or rumor that it will happen sooner rather than later has already given investors pause on several occasions. Events in Greece and elsewhere in Europe still hang heavy, too.
This was the shock from outside to which the weak technicals left the market vulnerable. The Fed just told us that they are starting to wind down sooner and stocks gave up the entire day's gain in short order.
Of course, even I am not fool enough to extrapolate too far beyond this one hour's worth of post market trading. But to me, it is another bit of fuel for the "where there's smoke, there's fire" line I wrote in this morning's Quick Takes Pro.