BarroMetrics Views: S&P 2014-10-13 III

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.

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FIGURE 1 S&P 2014-10-16

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