S&P 1216+ with a little Help from the FED

We and the markets got a surprise yesterday.  It is not QE3 but more like QE3 light and had its effect.  The important thing now is where the new liquidity goes.  If the banks keep it out of the hands of the speculators and just use it to prop up the balance sheets of underwater asset holders, the inflationary aspect will be small.  Commodities yesterday seemed to follow that premise and it was a positive note that equities rose 2:1 compared to gold.

For now we will watch to see how the market handles testing  the 1216 level in the coming week/

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