The FOMC is officially in the short-squeeze business. After futures came within 19 points (trading was halted there) of our next downside target – ES’ 1.618 Fib extension at 2155 – the Fed unleashed QEinfinity. In other words, they’re prepared to spend whatever it takes to keep stocks from melting down any further.
At the same time, VIX was hammered by 20% and the 10Y cratered from Friday’s high of 1.265% to a low of 0.711% — crushing the 2s10s as low as 41 bps.
After all that, ES spiked 212 points, and is knocking on the door of a breakout above the falling TL from Feb 19. Will it be enough? And, if “everything they’ve got” isn’t enough, what then? Full-on BoJ-style equity/ETF purchases? With very desperate doves clearly in control, I wouldn’t be surprised.continued for members…
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