Anyone else think it is pointless trying to read the markets with technical analysis when they are blatantly manipulated by governments through the central banks? I can't see how it can possibly work other than to expect massive intervention to prevent the break of key technical support levels.
What is to stop the Fed "printing" any amount of US$ to buy the market should it show signs of rolling over? I'm not sure that they would even report that they were doing this as non-one seems to be keeping track of what they are up to. I think Faber has a point. The HK government bought equities in the market during the Asian crisis. They can even just give their Wall Street buddies the cash to prop up the market at zero interest so as not to be seen to be intervening directly.
Fact is the Fed has a very big gun and unlimited ammunition, it is just a question of whether and when they decided to use it. I guess their problem is that the more they fire the gun the less effective their bullets (i.e. US$s) become as their value is eroded.
