Only two trading days into September and we have already seen plenty of trading action below the surface, although one wouldn’t know it by looking at the equity indices. The Dow Jones Industrial Average, the S&P 500 and the Russell 2000 are mostly flat so far this week but Wednesday’s daily charts showed some troubling weakness.

Today, all eyes will be focused on the European Central Bank’s interest rate decision and from where I sit, it’s anybody’s guess how stocks would react to further dovish measures. On the one hand, stocks have risen plenty off their August lows and into this announcement. On the other, however, the past five years have seen any dovish statements bought.

Read my full analysis here:


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