The Dow For the week of 03/14/2016

Jon Economy, Fiscal Policies, Market Commentary

While the markets have cheered the public admission that the central banks have completely failed in their quantitative easing and they will now buy more for longer, the technical profile is not as buoyant as it might appear on the surface. We have at least begun to enter the resistance area, but we have still NOT ELECTED any Weekly Bullish Reversal which stands at 17750.50. We have also not broken above the standard downtrend line on the weekly level. We have a turning point due next week. The general view in the USA is that the Fed should now raise rates since the market has recovered. If the Fed does not separate from the ECB and begins to focus on the US domestic policy objectives, then the future will be far worse.

This post was published at Armstrong Economics on Mar 11, 2016.