S&P500 and Quantitative Easing

We all think we know that the Fed pumping huge amounts of money into the system is good for the stock market. But do we really know? If we take a look at just how correlated the pumping is with the stock market performance we really get a good idea as to just how powerful this stuff is:

The best part of the chart is at the end of last summer. You had monster technician Sue Herrera on CNBC calling for Head & Shoulders tops on the S&P. Meanwhile it was just the beginning of the next leg to the rally thanks to Uncle Ben's pumping. You gotta love it.

Big Thank You to Pragmatic Capitalism for putting up some great charts today via Credit Suisse pinpointing three of the most important correlations currently occurring in the markets and the economy. Check out the rest of the charts here.

See also:

Oh Bernanke, now you're just showing off (Reformedbroker)

Lessons from the past, German Hyperinflation (BigPicture)

A QE timeline (Calculated Risk)