Read this from Alpari's Chief Market Analyst this morning.......As a scene setting exercise it certainly provides food for thought.
HH
"Pressure is mounting on Janet Yellen and the Fed to act on the positive readings we have seen coming out of the US economy over the last 12 months. Last Thursday saw the first time the non farm payrolls had shown five +200K consecutive readings since 2001, we also saw the unemployment rate tick to 6.1%.
"Many believe that despite a low participation rate that a drop below the 6% level is the catalyst the Fed is looking for to act and it could well be as early as next month that we see an increase in tapering or even a potential rate hike.
"This could well spell danger for those investors who have invested heavily in this equity market rally. This rally is built on severely low volatility and even lower volume leading me to believe that if a change in monetary policy were to happen earlier than people expected, it would cause the gains to unravel at lightning speed."