The market took a brief respite today, a long overdue one many believe, after 10-straight up days causing just as many others to believe the run is the beginning of the next prolonged bull market.
The DJIA closed down a big 25 points, or 0.2%, on heavier volume, at 14,514.11 while the S&P 500 index declined 2.5 points, 0.2%, leaving it just under 5 points from its all-time high.
The slight decline sets the table for next week to see which way the market goes, onward and upward to new highs or downward to some kind of meaningful correction.
The specter of inflation popped into the equation Friday when February's consumer prices showed a 0.7% increase, most of it coming from higher gasoline prices, according to the US Department of Labor.
Most believe that the trend in February will not impact future inflation and cause the Fed to change monetary policy. The easy-money trend, in other words, according to these watchers, is still intact.
It should be noted that many people don't trust the government's numbers, to beging with, arguing the Fed and other central banks along with some hedge fund folks have been keeping a lid on the price of gold.
Toss in a compliant MSM and you have all the necessary ingredients to bake the perception cake of your choice. Markets are to peception as perception is to wealth effect.
Next week investors will be watching the latest FOMC meeting, news about the propsects of growth in EU and budget discussions in the UK.
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