*We've been tracking Federal Reserve balances. They've been moving up the last two weeks which gives the market extra support.
*Longer term we still see their reserves in a downtrend which, if it continues, should be a weight on markets.
*It will be more important to update their moves into their next FOMC decision mid December.
We've been tracking Federal Reserve balances. They've shown the ability to lead markets higher and lower. These are the same balances that built up in the quantitative easing ("QE") process. QE was a key driver to support the market. Changes in these reserves affect the bond market and so the stock markets.
|Source: New York Fed|
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