sp'weekly8b
Summary
*most notable today, we have flipped back to a blue candle..a provisional warning of trouble.
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Yes, we saw some weakness across much of the trading day, but really, the price action is still a style that favour the bulls. This is especially reflected in the VIX, which only gained 4% or so.
USD breaks support
The USD has unquestionably broken support. The implications - at least so long as the USD remains <79.50, are for extra upward bias in all US asset classes. That sure doesn't mean equities - or any other given asset can't see net declines, but a falling dollar will certainly help take the edge off.
Looking ahead
We have productivity/costs, the EIA oil report, and consumer credit..yet far more important...
Yellen is due to give testimony to the US congress across much of Wednesday morning. It will likely get blanket coverage on the financial TV networks. It should be noted that Yellen is also due to address the US senate on Thursday.
*next sig' QE-pomo is not until Friday.
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Goodnight from London