QE3 is over. FED will not yet increase its interest rate. Will ECB's EQE profit to US market as FED's QE profit to European market? We don't know and we can hardly think that it will.
What will fuel the market and particularlySPX?
On a chartist view, SPX was evolving in a clear channel swinging between the top and the bottom. But on a long scale we can see that since November 2013 when FEd announce the end of QE3 and the tappering, the index cannot reach the highest point of the channel and become very quickly at an oversold level.
Therefore at leas a correction process wich has already started will appear. The safest correction would be a 50% Fib retracement to 1780. Bellow, SPX would hardly go on the upside for a long time. Please bare in mind that the level of the index at 2000+ is just a virtual level that doesn't reflect the appropriate value of stocks and market because it is being fueled by FED's QE1+QE2+QE3+ cheap money i.e low interest rate....
What will fuel the market and particularlySPX?
On a chartist view, SPX was evolving in a clear channel swinging between the top and the bottom. But on a long scale we can see that since November 2013 when FEd announce the end of QE3 and the tappering, the index cannot reach the highest point of the channel and become very quickly at an oversold level.
Therefore at leas a correction process wich has already started will appear. The safest correction would be a 50% Fib retracement to 1780. Bellow, SPX would hardly go on the upside for a long time. Please bare in mind that the level of the index at 2000+ is just a virtual level that doesn't reflect the appropriate value of stocks and market because it is being fueled by FED's QE1+QE2+QE3+ cheap money i.e low interest rate....
