This doesn't augur well imho?
"Last week we had the bombshell development of the Swiss abandoning their Franc peg to the euro. This was a development with grave implications. They know that this move will severely damage their exports and tourism industries, but they have done it because they realize that it is better to take to the lifeboats now than go down with the Titanic (the euro). This was a major vote of no confidence in the euro that has kicked out an important prop from under it -
- The positive background fuelling all this is that the Fed has been scaling back on QE while other countries and regions, like Japan, and soon Europe, have been stepping up QE. What the charts above are telling us is that at some point and perhaps not very far into the future "the music is going to stop", and you sure don't want to be around if that happens. If the Fed were to reverse course and announce QE, the dollar and stockmarkets won't just drop, they will crater. This could even happen, ironically, when Europe announces its huge QE package soon - why? - because the markets know this is going to happen and have been moving to discount it - this is why the dollar has been forging ahead. So it could be a case of "Sell on the news."
To see just how dangerous the current situation is with respect US stockmarkets, take a look at the following chart - and draw your own conclusions. http://www.marketoracle.co.uk/Article49071.html
PS: GS can now be followed on Twitter as @themastarata