The Traderszone Network

Published in TZ Latest News 14 March, 2015 by The TZ Newswire Staff

What Happens When the Fed Finally Fails to Prop the Markets?

The Fed has created a very very dangerous situation.

 

Ever since 2009, anytime the markets came close to breaking down, “someone” (read: the FED) has stepped in a propped the markets up.

 

In 2010, the S&P 500 staged a death cross, where its 50-DMA broke below its 126-DMA (the half year moving average). Stocks were in a perilous state with the 2008 Crash still in everyone’s short-term memory.

 

The Fed stepped in, hinting at, then all but promising, and then finally launching QE 2 in July, August, and then November, respectively.

read more