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Some might wonder if the economy/markets are becoming addicted to QE injections.
QE1 & QE2 took place after the 500 index had declined at least 15%. Now an injection has taken place during a rally, at 2012 highs.
Is it “Gamble” to make an injection when the markets are at highs for the year?
Are their other barometers to watch to tell us if the injections are working at this time?
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Copper and the yield on the 10-year note both rallied prior to the announcement of QE3! The rally took both of these quality barometers up to falling resistance lines.
Watch Copper, 10-Year Yields and Crude Oil to determine if the recent injection is going to push the economy higher!
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