Fri, Feb 26, 16
08:45 ET Update: [Stockboardasset] S&P futures +55bps
08:45 ET Update: [Stockboardasset] Nikkei +108bps
08:45ET Update: [Stockboardasset]FTSE100 +71bps DAX +124bps
In the past 2 weeks, Global equities have diverted from the normal rout and maintain a corrective impulse wave leading-in to the G20 meeting this weekend. US VIX in this timespan has lost more than 50%, as well as US-Equities panic buying +9% short cover rally. US Equities on a double-banded oscillators signal overbought extremes, but what’s more troubling is the volume drop off. Even more troubling is how the US Equities rally was stimulated. First, OPEC announced production freezes saving SPX from the 1800 level, the FED announces MBS POMO cancellation and a US 7YR Treasury auction cancellation creating more panic buying. The structure of the move is unstable and we maintain our view of an unfair high in the near term producing a reversion.