I knew the market had not discounted the fact that the only reason the market went up was because the Fed had printed money. Last week the Fed was very close to the end of QE and yet the market was acting like it got there all by itself and we had a beautiful self-sustaining economic recovery.
So the market now has to collapse until the Fed comes in with the next round of QE or they forestall tapering or say they might come in and ride to the rescue. I don’t know what level on the S&P will trigger that. We were just at 2,000 on the S&P. Right now we are at roughly 1,830. Will the Fed make their move at 1,750, 1,700, 1,650? I don’t know.
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