How Long Can This Go On?

Any other time, it might seem odd that e-minis are in the green even as VIX has rallied 4.5% overnight.  But, such is the nature of today’s “markets,” when the motive, the opportunity and the tools are all in the hands of central bankers who are determined that stocks hold their breakout levels.

They can pull stunts like sudden spikes in USDJPY or CL when stocks threaten to break below key support levels — as they have multiple times this past two weeks.  Friday, it was USDJPY which broke out — driving stocks higher just like it did on Wednesday.

Maybe today, it’ll be another VIX slam back below the trend line of support it established for just such a purpose.

Regardless of how it’s done, you can bet they’ll pull out all the stops — convincing investors to ignore any relevant fundamentals or the mounting geopolitical risks.  How long can this go on?

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