I'm not happy with this pullback and weak rebound, I'll give bulls a little more time.
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With the market up this much, I would expect it to be due solely to POMO ($1.65 Billion).
However, I'm not sure all of it is really been deployed today, and might be saving some for tomorrow.
There's an indicator I look at that seems to correlate when POMO is deployed, and while some has been used today, it's not measuring up to such a large amount ($1.65).
They might be using just enough today to cause short covering and are saving some powder for tomorrow.
Also, keep in mind there's another deployment scheduled for Monday / Tuesday.
Thu, Oct 23, 2014 Fri, Oct 24, 2014 Outright Treasury Coupon Purchases 07/31/2020 - 09/30/2021 $1.35 - $1.65 billion
Mon, Oct 27, 2014 Tue, Oct 28, 2014 Outright Treasury Coupon Purchases 02/15/2036 - 08/15/2044 $0.85 - $1.05 billion
Also, breadth indicators are still confirming this rise...