Major averages finished mixed yesterday on substantially lower volume, a good sign as markets look to consolidate their recent pronounced gains. The sharp bounce from roughly 10% corrections to new highs was spurred on by the possibility of the not-yet-mentioned QE4 and the Bank of Japan's decision to accelerate their quantitative easing program. As other central banks look to also step up their respective QE programs, the US Federal Reserve will most likely follow suit, given that the US economy is still far off its mark.
Futures are down this morning on weakness and Europe and as some profit-taking likely takes hold going into today's elections in the U.S. With the indexes in an extended position and showing some churning action over the past two trading days, there is potential for the rally to slow down a bit as the market consolidates and awaits the results of today's elections.
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