In the past, Treasuries would have a prolonged period of selling after a QE announcement. Not this time around. Growth concerns have quickly come to the fore again, despite pledges of open-ended QE. This is a red flag for equity investors in my view. It’s a sign that investors are clearly losing faith in the Fed engineering a recovery via monetary easing.
As always, it’s prudent to pay attention to the technicals for signs of a weakening of the current rally. It feels like sentiment is turning bearish. I’d be snatching profits from the strong run up since the June lows.