Very few of the rallies inspired by Draghi’s jawboning have lasted. I suspect this will be no different — especially on a day when euro zone PMI hits a new low (since Sept 09) and US PMI, while marginallly higher, indicates falling new orders and higher prices.
The EURUSD has staged a nice rally off its overnight lows, but is just back-testing the broken red channel we discussed late yesterday.
I expect that the pop we get in equities on the opening will not last into the day. SPX might reach yesterday’s target of 1421-1422.58 (around 10:15 EDT?), but then we should see more downside.
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