With today's payroll print hardly bad enough to prompt instantaneous QE (as evidenced by the weakness in gold for now) and increasing truth coming out of Europe which confirms our non-game-changing EU-Summit calls; it seems S&P 500 futures remain confident about something since they have only retraced 38% of the EU-Summit hope rally, while EURUSD is over 100% retraced, European Sovereign bond yields have retraced over 100% of the gains, Italian banks stocks have given up between 75 and 100% of their gains and across all European banks equity prices have given up 50% of their gains. So what is there left for ES? Earnings? (not so much with the number of negative pre-announcements); Housing (hhm don't think so [3])
EURUSD has retraced 150% of the post-EU Summit rally (thanks to ECB cuts as well as hope fading)...
[4]
Fulcrum securities have almost fully retraced the gains - Italians banks for instance...
[5]
and even broad European bank stocks have lost over 50% of their gains... (or 100% of their gains from Friday's opening levels - where traders would have actually entered...
[6]
and EU Sovereign spreads are wider now than pre-sumit...
[7]
and yet S&P 500 futures are only down 38.2% from their post EU Summit highs...
[8]
Charts: Bloomberg