“Nothing defines humans better than their willingness to do irrational things in the pursuit of phenomenally unlikely payoffs. This is the principle behind lotteries, dating, and religion.” – Scott Adams
No real change to what we discussed in our latest Weekly Outlook Video. We still have to see what we get out of the BOE and ECB as Global markets continue to trade with a heavy tone.
The easiest way to get a feel for where we stand is just to plot the daily charts of pretty much any market around the world and you will see that they are trading heavy below the 50/100/200 DMAs while US indices are still sitting close to ATH. As you can see in the chart of the day, the ‘two generals’ are still working hard to prop the US up.
Something has to give and we suspect that it will probably end up being down to some kind of headline but one thing is certain, this divergence between the US and the rest of the world will not continue ad infinitum.
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