US Futures and Select Equities Approximately 10:15 Central
click on chart for sharper image
At roughly 10:00 Central things were essentially flat. Yet the ride in the S&P 500 futures shows a 26 point move from bottom to top (from 1117.50 to 1153.25)
S&P 500 Futures
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Notes:
The purple circle is roughly 10:00 AM.
The first green bar in the second frame is today's open.
For such action to occur occasionally is perfectly normal. That such action is now typical is not. There are massive distortions in the markets where every tiny piece of news, some of it complete nonsense, sends shares in whatever direction.
European Stocks Reverse 3.6% Decline
Volatility is the norm globally. Bloomberg reports European Stocks Resume Earlier Decline; Stoxx 600 Retreats for Second Day
The Stoxx Europe 600 Index lost 0.1 percent to 226.42 at 3:30 p.m. in London, paring an earlier drop of 3.6 percent. The gauge has tumbled 22 percent from this year’s peak in February amid concern that Europe will fail to contain its sovereign-debt crisis and that the economic recovery in the U.S. will falter.Someone is going to write a feasibility study and that caused a reversal?
The Stoxx 600 pared an earlier loss as the European Commission said it may present draft legislation on joint bond sales by euro-area nations when completing a report on the feasibility of common debt sales, putting pressure on Germany to drop its opposition.
I do not know what if anything caused today's glorious reversal, but if it is a "feasibility study" then prepare for more down because such a study is meaningless as long as Germany and France will not go along.
Heck, the nature of the proposal is such that all Eurozone members would have to approve it so even Finland could reject it.
Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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