The question on traders and investors mind ahead of the FOMC meeting announcement last week Wednesday was whether or not the Fed is going to tapper - and we had the answer to the question - the Fed is not going to taper their $85 billion monthly asset purchases.
Risk-On Trades -- the US$ Carry Trades, was back on again, with hot money going back into risky assets again.
Hot money going out away from the US and into emerging markets and currencies has the potential to cause the US stock markets to go into a pullback-down mode for a while, if the major stock indices are not able to maintain the current upside momentum.
As the US economy will go back into recession next year 2014, the Fed would have to increase the amount of their monthly asset purchases by the middle of next year. For now the debt ceiling debate should occupy the financial new for a while.
Key price level for NQ going into Monday trading session is 3220-3225 area. For S&P 500, key level for Monday is around 1700
-- Above 3220 for NQ and above 1700 for S&P implies the market has a bullish bias, looking for rally back up to test the recent high.
-- Below key level is bearish, could tank the market down to the next support, 3200 for NQ and 1680 for S&P.
