AMEX:IWM ISHARES RUSSELL 2000 ETF
So what will the central bankers do? Do they manipulate in a new way, and we defy the truth, and go up from here, and break the classic double chart, or do we return to sanity, and the FED returns to an "art form" method of manipulation, rather than the straight right at you method which has reduced the VIXX to historic level lows. Do the FED and ECB work in tandem, and what does the BOJ do, what's good for them, and damn the rest? Devalue and risk increased , wage increases, etc. or strengthen and hedge against it. Do they do their own thing, or work together? Does Abe release his 3rd arrow, and realize he needs a 4th and a 5th? The chartists have one eye on the charts and one eye on the central banks, or better have. I think Yellen thinks like Nike Nicholson said, "you can't handle the truth". The markets can't handle the truth, and continue this ride. But something tells me, they will find a way (to keep the ride and get the Dems elected in November) And what will be the cost of that idealism, forsaking economic sanity and the rules of capitalism? An economy based on something else, that's for sure. I see this circle of time and events as just that. A last chance for the survival of our current system and marketplace, or the birth of something new. This happens whether we have a collapse of the markets or not. And once the transition is over, be it swift or time consuming, the charts will rule, doesn't matter the system they chart!
I think the FED planned on staying with low rates, continue the bull through November, but did NOT count on unemployment getting so low so soon, because so many just dropped out of the work force. I think what is in play here is this... they know that wages will increase and already have because demand is increasing for higher paying jobs, with less employee pools to choose from. Products and services, minus food and oil, have been going up for some time, kept it hushed. So inflation will pop, requiring them to raise rates sooner than expected, which has all of democratdom in the US worried, because their popularity is so low. Yellen has to pull a rabbit out of the hat to stay this course, and bull market. Watching carefully here. This is a huge pivot point, and the markets wont wait too long to react,and doing nothing will be huge also.