sdpro--totally right on I think. From a fundamental standpoint I don't see where the ECB has any leverage here to realistically lower rates. Also, this looks a lot like short covering in front of that meeting, and key to me is to see if 1150 can be overtaken an then held... then we could see a revisit of 1210-1220.
Otherwise I'm arguing with myself on this call....my worse half ('da bear') says a 60% chance or more that we close below 1100 on Friday...
But its hard to make that case right now until we see the ADP report tomorrow, claims on Thurs, and the Monthly Jobs report on Fri...and how the market reacts.
Hence the 'good Mike' versus 'bad Mike' battle here. So I'm thinking we see a 1-2 day rally, a sharp intraday selloff & then we need to see if that selloff finds support. Of course the selloff may not occur.
Its just my sense here that this just doesn't quite look like its over to the downside (and rallies tend to be shorter lived as we get into the middle innings or so of a bearish trend). So I intend to only stay long thru tomorrow for a swing unless I see convincing targets taken out to upside. Mike
