Futures Jawboned, Volume AWOL, Greece & Oil Still Stressed

Jawboning still works. Especially when there are a lot of shorts in the market. And especially when markets are addicted to stimulus.

Zero Hedge noted that overnight futures were hovering around unchanged when ECB Executive Board member Benoit Coeure said that "a program to purchase covered bonds will start within days."

That sent futures up over 20 points. The German DAX and the French CAC each soared 2%.

That there is no volume associated with this move won't likely matter until it does. Yesterday's slopppy rise was on 28% lighter ES volume, 13.5% lighter NYSE volume (proxy for S&P 500), and 26% lighter SPY volume.

There have been many, many rallies since 2009 that have risen from the dead only to continue to all-time highs. I am still on the lookout for a three-legged correction that leaves people battered and bloody. The problem is that there are still one or two legs to go.

1970.36 remains the pivot for this view. A rally back to the 200dma (currently 1906) should be expected, as should a failure to remain above it. Another probe lower would likely wash out the bulls and set up a better, possibly longer-lasting buy.

Pure speculation at this point.

Also, if everyone seems to be watching the price of crude oil for the next move in equities, it may be worth watching oil's wave structure from the 79.03 low -- it looks like a three-wave corrective bounce so far which could suggest more downside.

Elsewhere, Greek bond yields should be monitored...again. They have come off their 9% highs back to around 8% which is still signalling stress. Problems throughout Europe have not been fixed; they're been papered over.