The collision of global markets and social mood

Thursday, April 21, 2016

Thursday -- Draghi May Have Reached The Limit

S&P E-mini Futures:
Flat after late-day sell off yesterday.

Draghi just announced more ECB stimulus and Europe is largely red (because it's not seen as enough). This could be all the news that matters today, because it hints that monetary policy is reaching its limits everywhere.

But in one other bit of news, it's Saudi Arabia again:

All those princes with all those growing families and dependents can't possibly depend on dwindling oil reserves for their future Rolls Royces. Instead, they'll depend on Private Equity.

A "gargantuan sovereign fund will team up with private equity firms to eventually invest half its holdings overseas." Right into the hands of the infidels. Hilarious.

EUR is notably stronger on Draghi's comments (another problem for him). But USD, while down, is still above its recent swing point.

Prices continue to slide and now threaten their respective March 17th swing points which could then add pressure to the downside.

WTI rude currently selling off from it pre-market peak. Ditto NG.

Ripping higher in unison.

S&P Outlook:
The overnight move in E-mini futures is choppy and not impulsive, yet it's clear the market is getting closer to at least some sort of near-term top.

This is the count directly from my chart. Sorry if it's not as readable.

Note price rejected a 261.8% Fib extension. Expecting another probe lower before higher prices in v of 5 at the 2112.02 area up to 2116.48 and possibly just beyond. Could see a spike and sharp reversal possibly.

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