Pre-Market Brief

Good morning. Futures are moderately higher, sp +5pts, we're set to open at 2037  Metals are weak, Gold -$8. Oil is higher by a rather significant 2.7%


sp'daily5

Summary

*ECB announce rates unchanged.

Ironically, they announce they will announce 'further measures' at the press conf. at 8.30am EST
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Good wishes for Thursday trading
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8.37am... STILL waiting for the press conf...................

sp +9pts... 2041... above resistance... next level is the 50dma


8.40am... finally... Draghi appears... blaming broken elevators for the delay.. hmmm

8.43am... Unlike the US Fed... the way this is being announced is truly lame...

€60bn is the headline monthly purchase amount, but that includes the amount ALREADY being done.

Remember... the ECB are already buying junk from the banks.... I'm unsure of how much that amounts to.

In any case.. market on the rise... sp +18pts... we're set to open at 2050.


8.54am... a little chop... sp +10pts.... 2042...  still..a clear break above resistance.

The SNB was the sign last week... but even more so... the EU monthly charts... but hey... those aren't important, right?


9.16am... A questioner trying to get Draghi to clarify the net balance sheet increase...

It would seem the €60bn is in addition to the existing QE of ABS (and other trash from the financials).

Still... its messy... the ECB has an appalling way of defining just what the hell they are doing.

European equities set to jump

The French, German, and UK equity indexes are offering very strong bullish signs for the spring. If the ECB announce annual QE of at least €600bn, the EU and other world equity markets should continue higher for at least another 3-4 months.

*since we have the ECB tomorrow, I thought it merited taking a brief look at three of the EU markets...

France, monthly

Germany, monthly

UK, monthly

Summary

Not surprisingly, the powerhouse of the EU - Germany, is leading the way higher. Even the UK FTSE, having been stuck for two full years is poised for a break into the 7000s.

Indeed, if we see FTSE 7K within the next 2-4 months, it will bode for far higher levels in most world equity markets across the next TWO YEARS.

*I cover the world equity markets in full, the first Saturday of each month.
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Looking ahead

The ECB are set to announce at 7am EST, with a Draghi press conf. at 8.30am EST.

*there is also the usual US weekly jobs data.
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Goodnight from London

Daily Index Cycle update

US equities saw another day of moderate swings, (sp' range 2012/38), settling +9pts @ 2032. The two leaders - Trans/R2K, settled +0.5% and -0.3% respectively. Near term outlook offers renewed upside.. to new historic highs, next key resistance is sp'2110/20.


sp'daily5

R2K

Summary

Little to add.

Most indexes merely churning ahead of the ECB. Price structure remains broadly bullish, but it will be important for the bulls to break new historic highs within the next 2-3 weeks.
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Closing update from Riley


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a little more later...