Why the market sold off ? A Technical analysis
The reason is very simple, third quarter ending in few days, window dressing and major holiday tomorrow. One of the Fed officials Charles Plosser decried that QE3 may not work as effectively in his speech today. If you want to believe in Fed speak, that QE3 is not going to work, that is OK. But the previous QEs have worked really well and this time is no different.
Three good economic reports that were keeping the market up , were than shoved under the bus over this one sentence. The housing data where home prices have increased was very encouraging,the expansion in manufacturing area in one of the Fed regions,and the consumer confidence report, were all very positive. “Look at that. There were three data points on the economy and we crushed them,” said Phil Orlando, chief equity strategist at Federated Investors.
Here is the video you can watch :