Good morning. Futures are somewhat lower, sp -10pts, we're set to open around 1604. Oil is trading $101, with the precious metals higher. An early morning break back under sp'1600 does seem likely. The only issue is if the bears can close it under, despite a large QE.
An interesting 'short' day ahead.
We have a large QE of around $5bn to deal with, but world markets are shaken up by the Egyptian issue, which has driven oil back above the big $100 level.
If we can close <1600, then I will be looking for the low 1570s on Friday, with VIX 19s.
8.33am.. futures jumping back higher, sp -3pts, 1611....hell, they are almost close to positive.
With the large QE, bears are massive risk today. Worse case.. a close >1625/30, which will nail the bears for another few weeks.
9.17am.. sp-6pts, so thats 1608. That is still a fair way from breaking the 1600 threshold, and will be really tough to break after 10am, once the QE money starts kicking in.
We've seen this picture before, 'bad news everywhere', only to close green.
A real mess of a morning ahead.