Fed Minutes Bullish, but Market Reaction Limited So Far

Its interesting to observe market behavior following yesterday's Fed minutes which suggested members are warming up to the idea of increased stimulus. This would have ignited a significant rally had it come a month ago. But yesterday's rally lost steam quickly and markets have already traded down only 4 points off yesterday's lows. 

This morning's negativity is in reaction to St. Louis Fed President Bullard who contradicted yesterday's minutes when he said that current economic conditions do not yet warrant further easing. Even before Bullard's comments, though, the reaction to the Fed's bullish minutes did not ignite nearly the rally that I would have expected. This may be just because we remain in the summer vacation time-period in the markets, but it may also be signalling that the markets do not have that much steam left to push them higher. 

That being said, I continue to like the market if the ES trades down to the lower 1400s and support confirms there. So we'll see how the first hour of trading goes this morning. I like long entries down in the lower 1400s on the ES.