21 July 2016 (9:18 AM EDT)
All “bad” news for U.S. markets today. Jobless claims dropped, indicating improvement in labor market (the Fed’s one condition for rate hike,
The ECB kept rates on hold (no negative rates) and did not say anything about stimulus. In fact, the central bank’s chief Mario Draghi even declared that euro zone economy showed much resilience in the face of Brexit and that banks were in better shape than 2009.
There you go. All those twists and turns in sentences mean, no free liquidty coming from the ECB. Euro jumped up as currency traders understood the meaning behind these words. Stock traders are still clinging to hopes of some kind of hint from Draghi about future stimulus so European markets and U.S. stock futures have stopped in their tracks.
Before all this, another stimulus related bad news had come from Asia where in a radio interview, governor of the Bank of Japan had denied any helicopter money for markets.
That’s a truck load of bad news for QE junkie markets.
I maybe wrong but now stocks have no place to go except lower.
If U.S. markets still go higher, that would mean markets are clinging to hopes of some relief from the Fed.
Apart from that, no hopes for markets now for any new installment of free liquidity from any central bank. The Bank of England has already refused to provide any new QE.
U.S. markers are expected to trade within their weekly range. Yesterday’s high and low will mark the immediate trading range for bigger indexes.
Watch those levels and trade with the trend.
Good luck, enjoy the session!