Here is what happens when Abby Cohen cheer leads into the Fed's scheduled expectations management meeting. The herd snaps bullish (note spike decline in the CPCE) as Abby Jo says SPX is 15% under valued, and there's the Bernank on the horizon to save the day. Problem being, the Bernanke apparently has not finished managing the inflation expectations out of the unwashed masses just yet.
Well, it could be time to get bullish sometime fairly soon, but it most certainly was not yesterday. The CPCE's EMA 10 (lower panel) does a better job of smoothing out the knee jerk reactions and could climb to the 1.00 range before a lasting rally happens.
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