On the other hand STB has long addressed the diminishing returns of each round of stimulus on the equity markets. I was pleased to see that Morgan Stanley is thinking along the same lines these days expecting the "QE3 rally to last hours or days, not weeks or months."
This move has all the telltale signs of the last four
Here is another daily chart that drills down a bit better showing the divergences and the support. Bottom line is price was finally oversold, drilled into major support in a bullish falling wedge and the indicators were diverging massively.
The minis really paint a picture. You can see the wedge resistance cracking as wekk as all sorts of other major resistance points going down as well today. This was a power move. If the bears are gonna hold the must do it here. That gray box is a possible STB reversal point. I'll be watching that. If that is gonna happen something basically has to blow up between now and tomorrow morning.
Their hand got forced and the ramp commenced. How high will or can it go is only known by the Fed. the obvious points are 1341 and then 1374. I'm not willing to look above that at this time, but that can not be ruled out. You can also not rule out a harsh reversal right here as the wedge resistance may hold its ground (unlikely, but you can not rule it out).
More in the morning.
GL and GB!