As mentioned in yesterday's blog, the Fed buyers were ready to buy the market, but no one in the right mind could ever imagine the monstrous size of the Fed buy programs that were engineered immediately after the FOMC announcement on Wednesday, designed to panic the short-sellers and send them back into hiding.
The Fed's actions, more blatant and more desperate, clearly demonstrates that the end game, either a deflationary collapse or a hyper-inflationary collapse, and the end of the Federal Reserve, is coming near, their action becoming more and more desperate. On one hand, they announced tapering of their QE, but on the other hand, they spends billions and billions of dollars buying up the markets.
Whether or not the Fed buying binge on Wednesday would continue on Thursday and beyond, and more importantly, whether or not they can attract new buyers into the market that could help propel the market into higher highs on Thursday and into the near future, we just have to wait. As with any manipulated market, all we can do is to trade price actions
For Thursday, key price level to watch for is 3475.
-- Pullbacks that can stay above 3475 will attract buyers, target higher high above Wednesday swing high.
-- A clear and sustained break below 3475 will turn buyers into sellers, targeting Wednesday's swing low.
