The markets meandered on low volume yesterday, however, with a positive bias, and we ended up closing about ½% higher.
The Fed watch is on; not as much in regards to the question as to whether higher interest rates are on the horizon, but more importantly if they will come up with any grand ideas to improve the sagging economy.
The bond market with its continuous rally and ever decreasing yields is as good of an indicator as you can find confirming that the economy is anything but robust. If the opposite were the case, we’d have higher yields and a falling bond market.
Nothing will surprise me as to what the Fed will throw at the markets next. Be prepared to deal with a relief rally, bitter disappointment, or anything in between.