This is a bullish development. However, it’s clear that these interventions are having less and less effect. Keep an eye on the S&P 500 resistance area of 1,358-1,360. We have a few strong trend lines as well as the 100 day MA. If we break through here, then the market could go higher as continued improved sentiment will lead to higher equity prices.
However, if the S&P 500 is unsuccessful, this would be the first time I know of that markets could not rally on word of monetary accommodation. Investors would be in big trouble (Pop of Moral Hazard Bubble?).
It’s too difficult to predict what will happen in the short term given the political consideration (how mad they are in the Eurozone); however, the market wants movement toward a political/fiscal union at this point, not more juice.