Markets 21 - 25 March 2016

Key Metrics:  

SPX  + 2040 

Oil    @$40 pb

DXY @95

VIX  -14

US10Yr -1.90%

FOMC 'Staying put'
Forecast: Cautious optimism for new market highs.

Last week markets behaved as predicted in our weekly premarket post both before and after the Wednesday FOMC statement which was accommodative due to, according to nine of ten Fed governors, the deflationary energy sector, weak business spending, soft net exports, and risks of global economic instability.

For those, however, still sipping the sauce of monetary policy interventionism I assembled a chart of the Baltic Dry Index (below) to exemplify how impossible it has been for the world's central banks to create demand with debt and inflation. And, yes, we can expect, despite the global downtrend,  more debt, more inflation, and continued shrinking demand unless an Andrew Jackson, or someone like him, becomes President of the United States or head of the European monetary union.

Baltic Dry Index Monthly Chart

This Monday (tomorrow) we will start the trading week looking for pullbacks (selling opportunities) around SPX 2050 - 2055 as low risk entries into the ongoing intermediate uptrend.

Keep in mind that, despite the technical, fundamental, and monetary policy aligning of planets, markets have not resumed the overall, broad market uptrend and will not until breaking through the historical interference between SPX 2060 - 2130.

SPX Weekly: The boundary to pass lined in red

Happy Marketing.