With Euro Zone still in quandary, eyes and ears of the market are focused on the US economy at present. It’s the news from the Federal Reserve that seems to have garnered the maximum attention. Markets have been keenly analyzing the news from the Feds on how soon QE3 will take place. Other market driving news would be the jobless claims, earning reports, economic reports, Philadelphia Fed survey, Empire state survey and jump-start economic growth which are of great importance to analysts. Responding to such news market on Wednesday, the markets witnessed saw a plenty of bullish sign for stocks. The S&P, NASDAQ and small cap Russell 2000 was up by 1, 13 and 7 points respectively. However there was a fall in Dow by 7 points.

The latest report on jobless claims has shown a decline which must have provided the upward trend on the stock prices. Also most of the earning reports are expected from various big companies to head north. On the contrary, the Philadelphia Fed survey and Empire state survey Wednesday showed decline last month. However, the market seems to have responded to the positive news this time.

According to Scott Redler of T3Live.com, the market is in a digestion phase. So, if the market closes below 1.395; it will lighten up and probably go net short. Likewise, according to Jeffrey Lacker, the president of the Federal Reserve Bank of Richmond, the economy is growing at an uneven pace in recent quarters so the people are overestimating the monetary policy and labor markets growth.

Moreover, as stated in the late July meeting, the Federal Reserve is ready to take some recovery steps if growth remains blurry and unemployment shows no sign of easing. Similarly, according to Mr. Ben Bernanke, the Federal Reserve would be ready to provide more aid to lower the unemployment rate. However, without any distinct time frame as of when the next easing will take place, it is difficult to contemplate as in which direction the market will go in the future.