graph-300x221The Fed surprised the market by not making any move to taper quantitative easing.  The S&P 500, Russell 2000 and Dow Jones Industrial Average all closed at new record highs.  Many technicians now see the market as near the high end of its long-term trading channel.  Between now and year end, the Fed expressed concern about the headwinds of fiscal policy and the risks posed to growth by the upcoming discussions on the budget and debt ceiling.

Rarely does the stock market go up in a straight line.  With the exceptions of a week or two in late June and late August, the S&P 500 has advanced in a relentlessly steady pattern since January 2, 2013.  It would not be surprising to see some exhaustion of buying interest in the next few weeks.  We are buyers on pull-backs.

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