An unsurprising higher volume reversal hit the markets on Tuesday after a string of winning days over the past 2 weeks on the major averages. While some leading names such as AAPL, AMZN, KORS, and SSYS retraced, others were still able to move higher. With the Fed minutes from their previous meeting coming out today at 2 p.m. Eastern time, any neutral tone may be used as an excuse to take profit in the sharp rally the market has seen so far in August.
Additional progress was made in the eurozone crisis when a German government official said some concessions could be made for Greece as Greece is hoping for a delayed austerity program. However, in the U.S., Atlanta Fed President Lockhart said further monetary easing is possible but warned that monetary policy isn't the cure all. The question of QE-to-come may be finding a clue in the action of gold and silver which are still holding their recent buy points last Friday and this past Monday, but all of this is likely dependent on the news flow regarding QE. For now investors should expect the market to at least try to consolidate recent gains with an orderly pullback, although the possiblity of a deeper pullback always remains.
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