First read the QE2 announcements by the Federal Reserve and NY Fed (specifics). Also read Bernanke's op-ed in the Washington Post. Now for a few charts.
Reaction to QE2 announcement (2:15east): 20+yr Treasury Bond ETF (TLT) got destroyed, gold (GLD) snapped back hard (but closed red), equities (SPY) and the Oil ETN (OIL) hitched onto gold (closed green) and the US Dollar ETF (UUP) and Corporate Bond ETF (LQD) were weak. Some analysts say TLT got hit on less than expected Fed purchases on the long-end.
On the day: TLT -2.06%, SPY +0.40%, OIL +1.39%, GLD -0.69%, UUP -0.47%, LQD -0.33%. Bonds did not react well, however, the high yield bond ETF HYG rallied hard which was interesting. Duration?
Last but not least, check out SPYs ascending channel. It looks similar to the January-April rally. It could re-test the 122 high (closed at 120) but keep "one eye up" for any potential negative catalysts of the black swan variety that could break SPYs ascent. Don't miss the charts after the break.
Reaction to QE2: TLT in Green (others labeled)
Full day of trading 11/3/2010
SPY Ascending Channel and 1-year Sideways Channel