US stock indices closed yesterday’s trading session in the red zone after Ben Bernanke said that the Fed Reserve wouldn’t be able to make up for the “fiscal cliff”. The FOMC meeting ended with a major decision: to extend QE3 in 2013 (to spend $45bn a month on bond purchases).
In was decided to keep the key interest rate low at 0%-0,25%. This policy will be maintained until the situation in the US labor market improves dramatically.
· Dow Jones: -0,02 % down to 13245,45.
· S&P 500: +0,04 % up to 1428,48.
· NASDAQ: -0,28 % down to 3013,81.
The chart below, courtesy of , reflects the current state of affairs in the market of S&P 500. The price is expected to completed wave (x) and drop down to 1400. Still, the price may break above 1425. F this is the case, the retracement will take the form of an irregular pattern.
