ECB President Draghi threw everything but the kitchen sink at the markets yesterday, but the reaction was very muted. Perhaps market participants had a change of heart. Long Live Central Bank Intervention. Indeed, after yesterday’s collective yawn, the bulls decided to go on the offensive. Following Europe’s lead, stocks were off to the races right from the opening bell. As is often the case, most of the move came in the first half hour of trading, but the bulls were able to hold onto the gains for the entire trading session.
By the close, the Dow Jones Industrial Average was up 218 points to finish the day at 17,213. The S&P 500 was up 32 points to close at 2022. Gold was down $18 to trade at $1,254 per ounce, while oil was up $.68 to trade at $38.52 per barrel WTI.
Believe it or not, we are within spitting distance of the breakeven level for both the S&P and the Dow for the year. I know it’s only been a little more than 2 months, but it seems like an eternity. The bears had total control of the situation just a few weeks ago. Now we find ourselves in a battle for position. Oil has rebounded some, central banks are accommodating and despite a decidedly overbought situation, sentiment is still far from bullish. Next up – the FOMC meeting. The Fed has a lot to chew on as next week’s meeting approaches.
Have a great evening everyone.