Now what? With the DJIA back to unchanged on the year, the S&P at the highest level since Nov 5th and the market’s punk reaction to the much better than expected May payroll # (helped by funky estimates within it) where it was one of the few examples since the March lows of stocks not celebrating ‘less bad,’ it raises the question of whether the rally is done or is it just resting before the next big event. While the bulls will need less bad turning good at some point, over the next 3 weeks, all eyes will be on the June 24th FOMC meeting where we can all picture the visual of Bernanke in the swimming pool doing his best to keep that beach ball (interest rates) under water. As evidenced by Yellen’s comments on Friday, the Fed is in unchartered territory with their current QE policy and since Bernanke has never been on the World Poker Tour, we don’t know whether he’ll know when to fold em or not. S&P downgraded Ireland’s credit rating.
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