The recent market volatility has been due to Syria.  It’s important to see impact of taper next week and the week after before making decisions.

QE was announced last November and there was a dip in December before SPY took off in January.  Hence, the taper announcement will create a lot of near-term volatility.

However, QE drove stocks up so taper will cause them to revert to the mean.  Rising interest rates are opposite to what the Fed wants and currently they are having an impact on the economy. Hence, the current QE policy needs to change eventually leading to a twist to restore low interest rates.

Oil is now falling and is a primary liquidity indicator.  Oil has been in a uptrend and a big run-up since mid-June.  After every big run-up see oil in Apr 2011 or Mar 2012, the SPY has peaked and TLT has turned.