Saved by Zero

I guess there is some irony in the Fed using a jingle from a Toyota commercial to save the economy. The market clearly liked it. See the above chart for the Dow. We closed above the 50MA but neither the Dow nor the S&P could eek out a close above the December highs (See B.) This is the next resistance level and after that, a good chance we go to the November highs (See A.)

A bit more about the Feds actions: The New York Times printed this sub-head today on the front page, "Agency Vows to Print as Much Money as Needed ..." Obviously, the long term risk here is runaway inflation. On the other hand, from a deficit point of view, the government is borrowing money at 0% and will pay back that debt with highly inflated dollars.