Just a few thoughts on the technical of The indexes. SPX, DOW and NDX have all been trading above respective 200d MA .The SPX and DOW for about 5 days,NDX for about 10 days.The 200d is more a of a guide post then a definitive point of ‘ bull or bear’ for the long-term direction of underlying asset.The longer asset stays above the metric the more the slope starts to turn higher which gives confidence that trend will continue higher.Enough of that Mumbo jumbo,Last Thursday ECB hinted at more QE in December,The Indices gapped higher on open and have stayed above gap ever since.Powerful combination of a gap and 200d MA to keep Bulls happy.A test of the gap and 200d will be forthcoming,if they hold could be smooth sailing for bulls into year-end.
Into Europe where the QE impact is felt more directly,The Stoxx50 and Dax have yet to trade above 200d MA,The CAC sits above.If the Dax can break above and maintain trade above that level it could give a real nice lift to all Stock markets as it is a Proxy for exporting countries.A continued weakness in Euro will definitely help accomplish that feat.(11053 is level as I write)
Something to monitor next couple of days