US market outlook remains the same: 'market in correction'. The market rose Tuesday after worries of a Greek debt default eased, and euro rose and dollar fell on the news. However, each of the US major market averages rise can not still be interpreted as a 'follow-through day' or a technical sign where institutional buyers are rushing in. Market would like to see a stronger punch in volume than what has been shown today in US, and also market would need to see more leaders breaking out of sound base patterns on higher volume.
In addition, many market leaders are already in 3rd or 4th stage bases, and second tier stocks, which are not major winners, are in 2nd stage bases. And, also in the 3rd year of a recovery, the market tends to be choppy. The Fed winds down its two-day meeting tomorrow Wednesday, followed by a press briefing by Fed Chairman Ben Bernanke at 2 p.m. The Fed releases its post-meeting statement at 12:30 p.m. and its economic forecast at 2 p.m. The meeting comes just a week before the Fed is scheduled to retire one of its most controversial programs. Fed watchers are watching is what the Fed says about the economy as the jobs picture remains weak and growth has stalled. A few things to note yesterday after the market closing: -Fitch warned last night that the U.S. credit rating would be put on negative watch if a debt ceiling deal wasn't reached by August 2. S&P has assigned the U.S. a negative outlook which means that its AAA rating could be cut in coming years; -German economic sentiment fell from 3.1 to -9 against expectations of a drop to -3. The real drop came in the financial sector, where bank sentiment fell from 14.1 to -10.5 and insurance went from -4.3 to -11.6. '+'
