Bulls found fresh legs on Wednesday with support from the FOMC, despite the reluctance of Greece to “play ball” with its creditors, which has been depressing investor sentiment. Everyone seems to agree that the unresolved debt crisis in Europe is the main thing holding back global economic recovery and the snorting stock market bulls. To be sure, the situation in Europe is not good.
It’s a very tough call to ascertain What the Market Wants this week. Clearly, the market was dismayed by the unexpected downgrade to France’s credit rating on top of the handful of other downgrades that were not such a surprise. Recall that Fitch analysts had predicted earlier last week that France would keep its topnotch AAA+ rating. While the market was spooked Friday, not all of the gains from earlier in the week were wiped out.