Tuesday, 20 May 2014

10am update - opening a can of QE fuel

US indexes open moderately lower, with the sp' losing the 1880s. There is notable weakness in the retail sector, which is no doubt confusing those who believed in the 'blame the weather' theory for Q1 weakness. VIX is holding minor gains of 3%...still in the 12s.


Dow, daily


*Equity bulls need to hold the Dow 16400s..where the 50 day MA lurks

Well, lets see if we can level out by 11am...at which time the QE fuel - of $2-3bn, should be enough to kick everything back positive.

A daily close, around sp'1895 remains a very valid target.

Notable weakness...URBN, -5%...seemingly headed for $30.

10.03am... smaller 15/60min cycles offering first sign of a turn.... ahead of the QE fuel.

No doubt, there will be a whole lot of whining and bitching on Zerohedge if we close significantly higher by the close, but then..those maniacs haven't learnt a damn thing since 2009.