The SNB reminded everyone what an artificial construct our capital markets are and any hint of free floating anything can produce total carnage:
Some argue that the Europeans just haven’t QE’d enough and hence they have problems versus the oasis that is the US. I find this to be an overly simplistic argument that rests on the premise that central bank actions have no consequences and ignores the plight of most Americans who find this supposed oasis to be far from a paradise and rather a never ending episode of “Lost”.
But let’s keep things simple for the moment shall we:
The backdrop: The $ES has tested its 200MA overnight after 5 down days in a row:
The $DJIA is precariously close to breaking its weekly trend line:
And today is monthly OPEX ahead of a 3 day weekend. Could make for another very volatile day with a nice flush to scare everybody.
Will the barn catch on fire and burn to the ground into Friday’s close?
Not according to this powerful October bottom buy signal conveniently scheduled to be launched during market hours today:
The US Fed is not going all Swiss on us anytime soon. So at least don’t be surprised if something, anything, soothing will make it into our newsfeed today.
Besides Bullard what else has this market got? Let’s see.