SPX 5-Minute Chart ECB Mid-Day Rally After Draghi Promises More QE in January

ECB President Draghi disappointed traders at the press conference Thursday morning and European indexes and US stocks sold off. After Europe closed at 11:30 AM EST, Draghi ran to a microphone to reverse what he said earlier and proclaim that a QE program (sovereign bond-buying) will be announced in January. Bingo. Stocks launch higher as shown by the chart and European indexes will be set up for a big bump higher in Friday trading which is currently occurring. The DAX is up +1.3% and Spain's IBEX jumps +1.8%. The central bankers are the market.

Stocks sold off on Monday to begin the week so the global central bankers collude to prevent any further sell off in global stocks. The PBOC immediately floated the rumors about more triple R cuts for Chinese banks which saves the day, launching global markets on Tuesday morning and sending Chinese stocks on a wild ride higher this week; the Shanghai Index, SSEC, is up about +9%. The central banker's figured the PBOC goosing will keep stocks elevated into the ECB meeting yesterday where Draghi can take the easy money baton and provide further stock market pumping. Draghi dropped the ball so he came out before lunch time in the States to reverse earlier words and tell markets that QE is coming in January saving the stock market.

The markets have become caricatures of themselves completely tugged to and fro by global central bankers now acting in collusion to desperately keep stock indexes elevated and hope the wealth effect can spur the world's economy into a recovery. It will likely not end well. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.