What is going to cause a negative reaction in the markets is rates, commodities rising and the Fed.
Imo the FED is attempting to unwind its balance sheet of the trillions of usd in over inflated assets. I think the fed may have tested the water the other week when the markets went down a couple of thousand points and they had to stop.
I also think the Fed has intervened in the US bond market to shore up the bonds because if they kept going the way they were it would have been goodnight Irene for Bonds, markets and all.
We will see what happens next time the FED starts to unload and unload they must sooner or later.
