S&P Revisted 2014-12-01 II

BarroMetrics Views: S&P Revisted 2014-12-01 II

I was going to complete the series on Trends today; but, last night’s price action in the E-minis is worth a mention.

As Figure 1 shows, in the day session, each time the ES tried to rally, it was sold off. I can’t remember the last night this happened. In addition, in today’s FT MohamedEl-Erian suggests that stock traders are ignoring the signals from the commodities and bond markets – that a stock market decline is being warned. Finally a piece from The HK Standard which reported that home prices again fell in November by an average of 0.27% according to E-House China Holdings and China Real Estate Index System.

The CREIS further stated that most cities had large inventories of unsold homes. The cut in interest rates is unlikely to spur a recovery.

If we take these various items, and add them to the technical picture I described inĀ  BarroMetrics Views: S&P Revisted 2014-12-01, there may a solid warning that the stock indices are about to provide an unwelcome Xmas present. Let’s see what the future brings

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FIGURE 1