ECB President Mario Draghi said the central bank would make monthly bond purchases of as much as $70 billion starting in March, and running through September of next year. Stocks reacted positively.
Stocks broke above the declining trend line and regained the 50 day MA today. Today was day 24 for the daily equity cycle. Stocks still sport a day 8 peak so this daily cycle still maintains a left translated configuration unless stocks break to a new high.
And in spite of the positive reaction stocks still delivered another major bearish signal.
Stocks printed another quad Selling on Strength day. The Selling on Strength for Thursday was 1.511 Billion. However, today was not the only quad SOS day for this daily cycle. Another one printed on December 19th.
I have not ever seen a daily cycle record two quad SOS days. In fact, I have only seen a quad day printed 3 times total. They happened during three different daily cycles that led into the 2009 financial crisis low.