Chris Kacher says that since June 2010, the general markets have yet to correct -10% even with QE2 over. Further, the negative news out of Portugal was not enough to take the market down. It is a sign of inherent strength in the general market when bad news does not derail the general market. With QE2 over, treasuries dropped & money went into the stock market, thus we’ve seen this straight up from the bottom action in the general markets. The bounce off recent lows could also be market forces taking into account quantitative easing in Europe, or Euro-QE. It could also be an indication of US QE3 to come. In the meantime, the market trades in a relatively trendless manner that characterizes 2011 so far.
CNN's Wall Street Shuffle
07 July 2011