So, the ECB's Draghi delivered what the market wanted to hear, at the very least a verbal bazooka that will still need action to follow. Can't help but think that we have been here before, there will still need to be concerted action by various Government's, all of which have to take into account the little matter of getting re-elected at some stage.
Bankers don't need to worry about getting elected, they just concern themselves with getting caught out. Still, there is an old saying in the US that you shouldn't take on the Fed, that probably applies to other Central Banks as well. They have the ammunition, well, a printing press, to do the job and the nature of the inflationary money system is to always put things off into the future. It's no good arguing that they are simply kicking the can down the road to an eventual destructive end game, because the road itself isn't a dead end, like an motorway/autobahn/highway (take your pick) it goes on endlessly. Still, the markets seem to like this inflationary money, as long as most of it heads their way. The potential downside, which no doubt the market will also complain about and want an immediate response to when it happens, can be put off into the future.
As to the charts, all those potential breaches of the 20 and 50 dma that looked on the cards in the last update, are now looking reasonably bullish again, as you might expect after yesterday's big moves. The 20 dma on a couple of charts touched and then bounced up again. The FTSE100 was under the most pressure and still looks the weakest, but could be braced for a new push towards 5800 and 6000 again.
As for the others, FTSE250, Dax, Dow and S&P the trend still looks up and bullish for now.
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| FTSE100 |
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| FTSE250 |
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| Dax |
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| Dow |
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