While markets followed through on our last update the last two days has indicated that in the SHORT TERM, markets could be retracing a bit. There is some pretty solid trendine resistance at or near the daily 50 period moving average on most major index's so look for markets to move higher to that level and then possibly spill over again.
It is important to note that there has been some obvious buying from the BOJ and ECB, despite markets selling off early this week. In addition, as if on cue, both the ECB and BOJ have made statements in the last few days reaffirming their commitment towards current stimulus levels. Europe has announced it's intentions to cancel it's tapering plans and the BOJ has plans to continue it's stimulus for the NEXT FIVE YEARS!!!
Central banks have created the most epic credit bubble across multiple asset classes in history. Now there are defaults mounting across several of them and we will soon witness the limits of current monetary debasement (they call it stimulus). The next two to six months are shaping up to be the most devastating in history for the global economy. It will either be an epic market crash or a hyperinflation. It all depends on the central banks now.
Act accordingly,
The Market Vigilante
