Fuelling Inflation.

The Fed’s minutes to its January policy meetings showed heightened concerns over the economy, and policymakers said downside risks remain even after the 50 basis-point easing on Jan. 31. Board members noted that the data seen since December was "decidedly downbeat on balance". Fed officials believed that a fiscal stimulus package would support growth in the second half of the year, but some said it might not help in the near-term, when downturn risks are the largest. The minutes also said that the inflation data was also "disappointing."
The headline CPI is now 4.3% higher than a year ago, up from a 4.1% year-over-year pace in December, while the core inflation rate year-over-year rose from 2.4% to 2.5% in January.
Tracking Dow Jones on Wednesday,20/02/08.
Stocks languished in the early-going amid concerns about credit market liquidity and a worse-than-expected January CPI report, but eventually turned things around and advanced in the afternoon trade.
After digesting the economic data, the stock
market found a bullish stride that was helped along by the outperformance of the financial and technology sectors.
The bulls are in full control today and ended the day with a bullish marubozu candlestick.Looks like they are continuing the turbo charge fuel salvo.
Thursday brings economic news on jobless claims, leading economic indicators, manufacturing in the Philadelphia region and weekly oil inventories.
The market makers are taking everyone on a hip-hop trading sessions.On Tuesday, rallying in the early-going and then selling off into the close. On Wednesday it was just the opposite.
The candlestick has a long tail shadow beneath it for further range play being reserve for bad news again.