Will they or won't they.

An interesting dichotomy is appearing in the market. Although trades, analysts, and economists seem to think that Bernanke and the gang will do QE3 or QE to infinity, a predominance also believe another round of monetary stimulus is not needed. For instance, here is an excerpt from a CNN poll.

Here’s what CNN had to say about its poll.

This week’s Federal Reserve meeting is front and center, with many still on the fence about whether or not the central bank will announce any new stimulus measures.

More specifically, investors have remained divided about a third round of bond buying, or quantitative easing, by the central bank.

A little more than half (52%) of the 13,000 respondents to a CNNMoney poll say they don’t think the Fed will announce so-called QE3 when it wraps up its two-day meeting Thursday afternoon.

That’s similar to what a lot of market strategists and economists have been saying. By and large, they think the Fed will probably announce some form of stimulus. But they pretty overwhelmingly don’t think the market actually needs it.

In addition, I was reading a great post over at soberlook.com that goes on to describe that QE3 is not needed, via a set of various financial indicators. The article can be found here.

I continue to stay focused on the intersection of the market and money supply to gauge the probability of QE3, or whatever they want to call this time around. Although I believe that another round of QE is likely at some point down the line, I remain on the lower side of 50% that another round will be enacted. This is as the money supply/stock market model is increasing at an average 13-week annualized rate of 4% and a rate of 8.7% in the current week.

The rolling 1-week annualized change in money supply and the stock market.

Update: Yes, yes they will....