On Wednesday SPX closed at 4115.68 on choppy action and an NDX bounce from NQ overnight lows.
Markets corrected much of the overnight ES inventory but had a slight hiccup when they heard this: A number of participants suggested that if the economy continued to make rapid progress toward the Committee's goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases.
DXY was bid, benchmark Treasury note sold and gold futures gave up most of their intraday gains as people read through the 14:00 EDT release of the Fed Minutes from the meeting of 27-28 April. Also: A couple of participants remarked that, should investor risk appetite fall, an associated drop in asset prices coupled with high business and financial leverage could have adverse implications for the real economy.
We are still being influenced by the monthly expirations but that is obviously being impacted by indecisive action with obvious selling into strength this week. Maybe the picture will become clearer tomorrow.
