As indicated Friday markets were short-term much oversold making a rally likely as per the trusty $NYMO (McClellan Oscillator—see below). But even though headline indexes closed higher breadth remained negative and the NYMO added to the oversold conditions.
Some of the power barkers were out campaigning for a rally as well. The ECB’s Mario Draghi was quoted to say: “We are ready, able and willing to intensify QE”. It’s debatable whether doing so is a good thing but the belief in central bank candy still remains dominant for most traders.
Putting up Orwell’s quote is akin to comparing his thinking to Roman times when Bread & Circuses was used to keep the masses entertained with spectacles held in the colosseum. Today we’re