The Fed is the market. They are painting you a pretty picture, but they are creating a parabola in the market with their intervention. A parabola will always collapse. Based on the Monthly Job Report, the economy remains sluggish. Just last week, analysts expected 158,000 jobs to be reported, but instead the Monthly Job Report dropped a bomb on Wall Street by reporting a mere 38,000 jobs. This is the lowest number since September 2010. March jobs were reduced from 208,000 to 186,000; April from 160,000 to 123,000. The average for 3 months was 116,000 jobs. Do you really think this number of jobs can sustain an economy? Folks want to work, but the jobs are not there.
Hello iskie. I was out of town so I didn't see your post. Excellent observation on your part. I also noticed that MU has gotten too far away from the 20 dma, and it needs to regress toward the mean. This is accomplished in one of 2 ways. Either MU waits for the 20 dma to catch up or MU will regress to meet up with the 20 dma. Since MU still remains overbought, I vote for the 2nd outcome. The 20 dma is currently located at 10.99.