Today is turning out to be a nice day in the markets. Indexes (or indices, if you prefer) are up 1% – 1.5% in the U.S. Not only is it fun gaining more than 1% in a day, but this is a new high for the year, after being flat for the last month. Usually, flat action that ceases by setting a new high is followed by more highs.
Some haves complained this year that the market has been carried by just a few sectors. Today, however, some sections that have lagged, like tech and financials, have done well too.
The extra-early release of the Fed minutes today due to a leak, should have been a bit of a downer because they indicate that the Fed is thinking of cutting back on easing, maybe as soon as this summer. That probably means the Fed thinks economic growth will pick up as the year goes on. I think they’re wrong about that, but remember that this market since 2009 has been largely fueled by easy money from the Fed. So, for the market to go up strongly today is impressive because it is going up in spite of poor news.
We’ll see how long this rally lasts, but if it is typical, it should tack on at least a few more percent.