Early Response To LTRO Muted (Updated)
Some short-term S&P 500 levels we are watching that would increase the odds of a meaningful turn: 1366, 1364, 1360. Possibly the most meaningful indication of a turn would be to have a daily close below the current weekly low of 1354. While we have numerous bearish set-ups, the bulls remain in control until we see some evidence of a turn. Short-term up side includes 1376, and 1384.
From a DeMark perspective, we have a valid daily S&P 500 exhaustion signal in place. With a close above 1363, we will pick up another S&P 500 sell setup. A close below 1363, would “confirm” the valid exhaustion signal. Therefore, either way (<1363 or >1363) another sign of a tired market will appear at today’s close.
The ECB printed a little more money than the market’s expectations, but well within the expected range. As shown below, the DAX has given back about 60% of this morning’s early gains. Most markets are either up a little or down a little - nothing dramatic either way.
