The collision of global markets and social mood

Wednesday, May 10, 2017

Wednesday -- Mood Swing, FBI, BOJ, Sit & Wait

S&P E-mini Futures:
Down slightly in choppy trade.

Wide reversal of recent trends in most markets. Some are quick to assign cause to the firing of an FBI director.


Markets expand and contract. Reversals happen.

One thing that hasn't reversed in the recent trend in China. Deleveraging an overleveraged system is fraught with danger. Shanghai Comp was down yet again while the rest of Asia was green.

Europe is mixed.

Call it Mood Swing Wednesday. Or maybe it's the full moon. But there seems to be a disturbance in the force.

USD broad weakness. CHF & JPY strength as possible warning.


Japanese JGBs sold off across the curve after BOJ’s Kuroda acknowledged that QE purchases have become smaller. This should terrify central bankers and those who worship them.

In other words, it still ain't working.

WTI crude and NG both up over 1%.

Green across the board.

S&P Outlook:
S&P rising wedge yielded another new high that, true to form, was promptly sold off.

It's the second pop above 2400.98 that has been quickly reversed.

However, by the close, the market looked like it was ready to try again.

Today's full moon could be the excuse. Or the obstacle.

Still having trouble counting a completed Elliott wave pattern to the upside, so not much to do unless better prices appear for a long trade. Otherwise, it's sit and wait for a sell.

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