BarroMetrics Views: S&P 2014-10-13 III
A quickie because I am en route to Beijing. No blog tomorrow, blog resumes Monday.
There was a suggestion last night that Yellen would launch QE4 (Economic News 2014-10-16) despite Fisher’s denial (Fox News 2014-10-16). [Remember that Fisher is one of the two hawks on the FED, the other is Plosser. Both retire 2015, Fisher in March, Plosser in April].
Yesterday’s price action suggests that the rumours of QE4 placed the drop in the stock indices on hold. Figure 1
I can’t shake the feeling that we may be revisiting Oct 87. If so, there should be a rally tonight followed by a gap down on Monday. Let’s see what Monday brings.
FIGURE 1 S&P 2014-10-16