It never gets old… if this sell-off was triggered by a realization that the consumer is truly depressed (retail sales) and the Fed is almost done, then the face-ripping rally (notably on weak volume) of the last 24+ hours is the ugly truth that the ‘market’ is always and everyday a function of central-bank bullshit. Since Bullard’s “QE4” comment (strengthened by random headlines on Yellen’s “economic confidence” and ECB Coeure’s “QE any minute” comment), the Dow is up 400 points, S&P up 70, and Trannies up 3.5%. Small Caps are now up 3.5% on the week and 30Y Treasury yields only -2.5bps on the week.
Since Bullard’s Bluff…
and on the week Small Caps are squeezing higher…
Double-whammy…
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Of course what everyone forgets in this exuberant bounce is that the higher the Dow/S&P rise, the lower the probability of QE4… game-theory that!!
Simply put – meet the Data-Dependent-Dow ™
Charts: Bloomberg
via Zero Hedge http://ift.tt/1vnxCIg Tyler Durden