The markets are in rally mode today as positive comments from the Federal Reserve tomorrow afternoon are expected. It appears the markets may even be hoping for some QE3 news. Ben Bernanke and the rest of the Federal Reserve are meeting to discuss policy. They will announce it tomorrow. The SPDR S&P 500 ETF (NYSE:SPY) traded as high as $129.55, +1.85 (+1.45%). This was a major gain for a market that has seen seven weeks of selling.
The Dollar is also taking a large hit today. A down Dollar means a strong up market. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is trading at $21.33, -0.12 (-0.56%) This weakness in the Dollar is partially related to possible further easing measures by the Federal Reserve but also an aid package to Greece that may be given as early as tomorrow. The first step tonight is a vote of confidence for the government. Assuming that goes well, new austerity measures will be voted on. The market is anticipating a royal flush of approval. Should something happen, the markets could freak out. It is unlikely but not impossible.
The rally today is broad based. Financial stocks were weak early but have roared back and are now matching the gains of other stocks. JPMorgan Chase & Co. (NYSE:JPM) is trading at $41.00, +0.52 (+1.28%). Technology has taken charge with the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) trading at $55.08, +1.01 (+1.88%).