While the official vote tally included only three dissents (two who opposed any rate cuts and Trump’s sock puppet Stephen Miran) the dot plot illustrates a much greater degree of dissent. Six showed no interest in pushing through the additional rate cut the market is pricing in.

It was this realization that sent ES 92 points lower overnight. But, it was the QE (not so subtly renamed) of $40 billion/month which allowed stocks to recover much of those losses.

continued for members…

Note that the initial spurt allowed ES to tag the .886 again. However, it also enabled ES to regain its 10-day moving average.

SPXSPX, on the other hand, came quite close to a double top and to the purple 1.618 extension it just missed on Oct 29.

COMP continues to look shaky, with a 16% slump still in the cards.

Keep an eye on the bond market however. The 10Y has gapped back down to its SMA20 and the 2s10s is pushing 60 bps. Would we really need half a trillion dollars in additional liquidity to provide adequate liquidity to a healthy bond market?

Stay tuned…