..Are we there, yet?

Either a big fat brick wall or today’s technicals point to higher days very soon.   The macro trade was put back on today ahead of QE2,  Euro breaking out of a month long triangle, USD signalling another leg down as per projections, if QE2 comes out 'consensus'.     In equities, a fresh buy signal is inches away as the market re-tests 200 week MA (need to close week >200ma)/ Oct highs with the vital areas (Transports/Nazzy ) flirting with 1 yr highs simultaneously.    As the usual case in the marketplace, whenever there is a critical technical juncture…a market moving event takes center stage.    Is this QE2 going to be it or will we be talking about the NFP# in 24 hours as the next direction ‘event’.  The Donkeys and Elephants exited the building quietly overnight, implications of the in-line results will take some time.

As noted this week,  there is no problem with a sell on consensus news as it would be a welcomed ‘digestion’ process for the market to eventually near SPX 1250 by year end as the underinvested (as in % returns in 2010) backseat the ‘seasonality’ trade.