By Chris Becker
A flat session in Asia exploded in Europe as Mario Draghi at the ECB said it would consider adding to its QE program and extend it past the September 2016 deadline. European stocks lifted over 2% while US tech stocks were buoyed by excellent Google and Amazon earnings. The Euro slumped nearly 2 cents against the USD to its September lows while the other majors heldfast. Bond yields of course tumbled with spreads narrowing everywhere and the 10 year US Treasury flighting with the 2% level.
This ECB magic is giving stock markets the reason to rally and significantly breakout and we will see the pre-correction highs tested as a result.