11 October 2016

SP 500 and NDX Future Daily Charts - Stock Bubble Spanked By Reality

Stocks sold off today triggered by a wide miss by Alcoa last night as they kicked off the third quarter earnings season.

Other corporate bad news added a bit of fuel to the reversion to reality.

We will be getting the Fed minutes tomorrow which may stir the pot a bit. I do expect them to give it a go for a 'one and done' in December. It has nothing to do with the economy, except to the extent that it is not falling apart, making their policy-needs driven rate increase too embarrassing to justify.

The market is fragile, and looks a bit toppy. But given the central banks and their liquidity life support for it, and the self-absorbed narcissism of the fatuous class, stocks may keep toddling along until 'something happens.'

Have a pleasant evening.