A Whiff of QE4

BarroMetrics Views:  A Whiff of QE4

Just a whiff of QE$ was enough to cause the S&P, on Friday, to close higher with a relatively strong looking candlestick  (Figure 1).  But,  the Market Delta Footprint charts showed that beneath the surface all was not as rosy. Unfortunately I am unable to show you the Market Delta chart because the PC in which the system is installed is down. I can tell you that: the while the total volume on the day for Friday was down, the buying volume was up but the buying progress for the volume seen was below average.

In short, we are seeing the return of large volume sellers – something I have not seen for a while.

Still, so far as the S&P is concerned, I am still adopting an ‘out’ overview and strategy.  The test of the neckline at 1627 (blue line Figure 1) will determine if I switch to a ‘long or our’ or adding ‘short, long or out’ to the mix. Let’s see what the week brings.

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FIGURE 1 S&P Normalised