L.A. Little of the Technical Analysis Today website provided the below summation of the state of the market at the end of today under his Trade Chatter column. Little's conclusion is more uncertainty is likely to increase market volatility in the weeks ahead.
"The market always worries - or shall we say the traders and investors that comprise the market always worry. Worry, worry, worry - if you have money on the line then worry becomes part of your DNA.
This morning retail sales print stronger than expected and immediately the worry is the Fed will pull QE in September or at least start shutting down the program. Let's worry shall we.
I don't mean to sound nonchalant about the possibilities but Wall Street (read investors and traders) do not like anything that resembles uncertainty and with everyone of the belief that quantitative easing is the only reason this market is at these highs, well you can understand the reason for worry.
I can remember a time not so long ago where "bad news" was good as was" good news". It almost feels as if we are shifting to "good news" is bad as is "bad news". The glass is half empty - not half full.
The next few weeks look to be challenging as the uncertainty is set to grow - not diminish. Elections in Germany, QE going away, budget battles looming, etc. You can see the uncertainties growing and that is likely to bring volatility and pressure on these markets. That pressure is actually needed for it will lead to tests that let us measure and measurement is how we determine what is next."
H/T: The Kirk Report