Good morning. The German court (as most expected) voted yes to the ESM bond buying, so, no market upset today. Futures are a touch higher, sp +3pts, we're set to open around 1435, just 3pts below the recent high.
So, with the Germans voting yes, that's one major hurdle for the bulls out of the way. All the bull maniacs need now is for Benny to at least 'strongly hint' at forthcoming QE, or indeed actually announce new QE itself . I not expect the latter, and for this reason, I think the market will eventually sell off after any initial spike higher.
Considering the MACD on the hourly index cycle I'm still very reluctant to re-short, although we're pretty close to my price target level of 1440/45. I suppose its possible we'll spike briefly to 1450/60 if new QE is announce, but as noted, I'm guessing....no.
Good wishes for Wednesday trading!