Today the Fed released it's minutes from the last FOMC meeting and in it was the proof the market was looking for for additional "easing".

"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes said.

This is all it took for the markets to regain most of the losses for the day. The overall statement suggest that the Fed will not hold off to much longer if the data doesn't improve. 

"The probability of [Fed action] coming in mid-September now seems to be higher," said Paul Ashworth, chief U.S. economist of Capital Economics. "One or two of us economists thought the slightly better data in recent weeks might have put the Fed off, but I wouldn't have thought so reading these minutes."

Well honestly I was surprised to hear a more positive tone towards easing from the minutes. The minutes showed Fed officials decided not to act right away because they wanted to gather more data on the economy and evaluate how earlier measures were working. That all points to the Sept jobs report and the next Fed meeting Sept 12-13. The carrot is back in front of the market and until something knocks it down. I won't be expecting a significant pull back. 

Right now the 60 minute stochastics have been forecasting a clear buy zone each time it has pull back. Yesterday (Wednesday) it got oversold again for the first time in 3 weeks. The late day bounce probably could be contributed to the Fed minutes but it still looks great when you see that indicator perfectly time a bounce.

Don't forget Thursday is the Finals for the Ultimate Trader Showdown the winner goes on to trade against me with my money no risk and the skies the limit on what they can make. Match start tomorrow live with the market open @ 9:30am est

Good luck to Athens and Airman

DTRS