Fed wants higher market

The Fed has been very aggressive and creative in their determination to juice up the economy. Having learned lessons from the policy failures of  the Great Depression and Japanese post bubble deflation, it has been trying various ways to jump start the economy.

Yesterday the Fed announced another round of massive bond buying. This has the potential for higher stock prices , but market yawned. The reaction was muted and the small bounce post announcement was faded quickly. Is that a sign of Fed policy  fatigue? We will know in months.

As of now this market continues to have a low volume rally and has not shown clear signs of distribution yet. As long as that continues the bulls still have upper hand. Any big selling will negate that picture.