Sweden Has A "D" In It. So Does Oil. So Does Twitter.

It's spreading. It's in Sweden and it could spread. It's not Ebola. It's worse.

Deflation.

The Riksbank just cut interest rates more than expected, to 0.0%, due to low inflation expectations, according to Erica Blomgren. Still waiting to hear from her whether the Riksbank actually uses the word deflation, or whether they dance around with vague musings such as, "an unwelcome fall in the rate of inflation" or some other such nonsense.

Here's an illuminating tidbit from Bloomberg: "The world’s oldest central bank has come under attack from former board members, politicians and economists for being too quick to raise rates as the financial crisis eased in 2010, and then for waiting too long to fight the deflation that ensued."

Deflation that ensued from higher interest rates. Remember that.

Meanwhile in Japan, the BOJ is said to be weighing whether or not to moderate their inflation view as oil falls, which adds to signs of waning momentum in the world’s third-biggest economy, according to Bloomberg.

Japan simply can't afford for Abenomics to fail, which it currently is. This would mean that yet again massive stimulus efforts have failed to eradicate falling prices. So now Scandia is following suit, along with much of Europe, and things aren't looking good under the hood in the USA, either.

Oil is merely a symptom of it. And it's saying "lower global demand."

Lower demand seems to be affecting Twitter as well, both from an active user standpoint as well as a stock price one. Worldwide, international, and USA timeline views are down 6, 7, and 8% year-over-year respectively.

Overnight S&P futures were in high demand as the market is most likely gearing up for a burst above the 50dma in the cash session today. Possibly 1970.36 will get hit too.

I will probably dump the SPY 196 calls I bought yesterday around the open and add a bit more UVXY. There is one juicy level of Fib extension confluence surrounding the 1981-1982 area that may or may attract the market, but I doubt I'll try to stick around.

Once the market opens, maybe things will change.

Still liking the 1904.01 gap below and the 200dma now at 1909.