Most of us are on holiday this week, but today is shaping up to be a very important day for investors.
China gave a surprise rate cut after flooding money markets with cash over the past week, the ECB cuts interest rates below 1%, and England announced another QE program worth 50 billion Sterling.
All of this with hopium for more QE from the clam has failed to get futures off to the races. Furthermore, Europe is not rallying as it should after such an interest rate cut.
Further evidence of problems come from the Euro falling below a crucial mark of 1.25 to the greenback.
While the U.S. markets have not opened it appears that the markets may finally be following suit to what the bond markets have been telling us for some time.
The next few days of trade is crucial for longer term direction.
Pay close attention to 1363 S&P. This is a Fibonacci area that needs to hold for longer term strength. Below that is 1345.
Let’s hope this is not the day the central banks died.
GLT
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