QE v Earnings Headwinds

With the end of the month and quarter occurring this week, we will wait for the final print of the market's number, which will then shape our thinking into the year end. Although a down week from overbought conditions this last week, it was hardly worth mentioning. Indeed, very sideways conditions may exist until the market fully digests the full consequences of QE, intended (One-off dividend payments) or UN-intended (One-off dividend payments) !! We are also on the cusp of a reputedly dire earnings season, with numerous companies issuing profits warnings. We feel a titanic battle will ensue as the powers that be would not want the market to fall when staring an election in the face, however technicals (the charts) and fundamentals (the earnings) both crying out for a pull-back. Short-term we feel a top could be in the market at the 1475 level and will be monitoring this level closely.