OK time for a break...and to inflict on you some meanderings. The ECB has joined the rest of us in compensating for slow economic growth with the promise of easy monetary policy. Both the DAX and US index futures got a quick pre market bump. Futures then succumbed to selling after the opening bell, taking SPX slightly below the 200 day moving average and 2750. NYSE A-D breadth fell from the open and is not as bad as yesterday but well below the neutral line and hampering recovery efforts. The small caps got slapped again today. The transports fell again and have bounced a little from near their half way retracement of the Sept based downtrend. The SPX 200 day moving average is now the center of attention as price action is consolidating a few points north of it as of this note. ES made an intraday low of 2741.75. VIX has been as high as 17.81 and has pulled back since. ES profile.
Huawei files a lawsuit against the US government in a Texas federal court. The suit submits the unconstitutionality of forbidding US agencies from doing business with the Chinese tech company.
ECB to keep rates on hold until the end of the year, rather than just through the summer as previously planned. The bank also said it would start a new targeted long term refinancing operation in September. This is in response to the global economic slowdown. The USD got a strong bump to near its Feb high as the Euro lost ground on this release. US treasuries continued higher. The 10-year is yielding 2.65% at mid-session.
Participants now wait for tomorrow's monthly employment data which follows yesterday’s ADP private payrolls number of 183k. A 'just right' number - not to hot and not too weak - might be what the some medium term traders are hoping for -- but what would a short term trader like at present value levels? The Fed does not react to a single report, but futures traders do. Knee-jerk reactions to better or weaker than expected NFP report might be carefully considered within the broader context as we sit in what looks like a juncture of indecision. The report will be released Friday at 08:30 ET/21:30 AWST/00:30 AET. Take a look at that chart. Hmmm.
(20min delay)
