When we quietly placed a target of 2000 on the big picture charts in mid-February [see: Cornered Bankers Resort to Ramping], 200 SPX points ago, it raised a few eyebrows. How in the world, given all the troubles facing global economies, could the market rally 10% in such a short time?
It actually reached 2000 a few days before projected. And, the answer to the “how” question then, as now, was CL and USDJPY. As we pointed out in The USDJPY Finally Relents, USDJPY and CL were both testing critical, long-term support. Had they not bounced, stocks would have dropped precipitously. But, they did.
And, now we face the question of whether SPX will reverse strongly or merely take a breather here. With Kuroda announcing any BoJ policy changes tomorrow and Yellen doing the same on Wednesday, “markets” remain in the hands of the central planners. Wouldn’t it be nice if they’d just publish future stock prices while they’re at it?
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