The collision of global markets and social mood

Tuesday, September 27, 2016

Tuesday -- Futures Fizzle As Deutsche Bank Won The Debate

S&P E-mini Futures:
Near complete retracement of overnight rally.

Last night's post-debate rally has fizzled due to much larger concerns that perhaps the rally of the past seven years is coming to an end soon no matter who becomes president.

Thus the presidential "reward" could be counter-intuitive: to the victor the spoils.

Behold Deutsche Bank, which hit record lows today after a failed bounce and its CDS (credit default swaps) rose to new all time highs (stress).

Bloomberg also noted that Germany's second largest lender, Commerzbank, was down 3% in sympathy, not a good sign.

USD stronger. JPY and CHF back flip to weakness.

Low volume levitation continues.

WTI crude crumbles as Iran said it was not willing to freeze, dashing hopes for OPEC production cut.

NG low volume rally after sharp reversal days ago.

Under pressure with only palladium bucking the day's weakness thus far.

S&P Outlook:
Price did trade below 2151.31 yesterday and kept the ABC scenario alive. The decline, which should be a "C" wave, is unimpressive and choppy, however.

I continue to be on guard for other scenarios that could eventually resolve higher, yet below 2139.57 could result in a test of the lower zone mentioned days ago: 2094.55-2103.25.

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