Alan Greenspan once said “I know you think you understand what you thought I said but I’m sure you realise that what you heard is not what I meant”. So there you have it. Investors are currently trying to figure out if the FED would raise interest rates in December and the market is reacting to them. We currently have Stanley Fischer and Janet Yellen in favour of rates hikes and market is showing a strong US Dollar. Before that we had Eric Rosengren sending global stock markets tumbling with his comments.
If you look at the SPX, since September 9th drop, we had the market recovering from the low and trading within the mean of 2156. Price action shows a headless chicken where one day price is up and one day price is down. So good luck in trying to figure their policies. So far I believe the US Dollar would strengthen till the elections. Beyond that, lets see who the new US President is.