© 2012 ROHR International, Inc. All International rights reserved.

Short & Sweet on the specific market comments in this post, because today’s TrendView Brief Update is an extended discussion of the volatility of the equities swing yesterday. Of course that also related to quite a few of the other asset classes that are influenced by the equities; not the least of which are the primary government bond markets.

And while the story broke after our research had been published this morning, it appears some new "limited Euro-bond" issuance is being mulled over by the Germans. That would obviously be a big step toward addressing the chronic bailout funding for the weaker southern sisters. Yet, once again, right now it is only so much discussion. And whether Chancellor Merkel can get her countrymen to go along with something like this is another matter altogether.

On one hand, it seemed just another driver of the extreme shifts between agony and ecstasy on the European influence for the global markets. And as a CNBC interview of the Financial Times’ estimable Martin Wolf on Friday morning pointed out, this must all happened very timely; while not noted there, is likely must look viable in front of this weekend’s Greek elections.However, there is already a market implication that is being inferred from any plan of that sort…

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© 2012 ROHR International, Inc. All International rights reserved.

It’s over. Central bank-a-thon’s three day run has ended. Good riddance. Amidst all of the other intense influences, this week’s scheduled central bank meetings and other activities were not necessarily helpful. Even the extended boost from Mr. Bernanke’s testimony and the somewhat unexpected People’s Bank of China rate cut was fading a bit by Thursday’s US Close.

Tuesday’s downbeat perspective from the Reserve Bank of Australia and Bank of Canada turned out to be the confirmation of the negative sentiment rather than the driver for further economic and equities weakness. That much was apparent from the resilience of the June S&P 500 future that held somewhat above the higher of its 1,260 and 1,245 supports. In fact, even in overnight electronic trading the worst it traded was 1,262.50.

And then on Wednesday it’s weak Euro-zone economic data all around into the ECB meeting and press conference. But do the equities break and bonds rally? Nope. And the Spanish minister saying that without assistance Spain was effectively shut out of the bond markets? No problem. Equities higher, euro higher, economic bellwether Australian dollar up as well. What in the world was happening?

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© 2012 ROHR International, Inc. All International rights reserved.

Short & Sweet on the specific market comments in this post, because today’s TrendView Brief Update was an extended discussion of the various price trends at a psychologically important juncture after the recent market ‘disconnect’. In fact, quite a bit of that is follow-up on the other asset classes (i.e. outside of equities) psychology and technical trend structure that has also shifted markedly due to the improved near term global economic and equities sentiment.

And that includes an important evolution of some of the key technical trend indications, like the daily MACD's turning up for EUR/USD, AUD USD. Of course the commensurate weakness has seen the reversal to the DOWNside on near-term indications for the US dollar index and the primary government bond markets.

In our view this is all still likely a correction based upon the slightly more constructive complexion of the debate in Europe. As we have seen in the past, that can have anywhere from a 72 hour to approximately 10-day lifecycle prior to greater contention weighing on the situation again. And the equities are acting like they believe the somewhat more extended grace period is likely in place, possibly while we await the likely or actual outcome of the next Greek collection a week from Monday.

In any event, there are neither General Market Observations nor EXTENDED TREND IMPLICATIONS, in today's post, because all of that is covered in your courtesy access to today's TrendView Brief Update.

Thanks for your interest.

© 2012 ROHR International, Inc. All International rights reserved.

The Weekly Report & Event Calendar is available through the link in the right hand column. The focused comments below it are now also available as well in the calendar section as the now regular weekly Summary Perspective on Key Influences. We hope you find that useful as well. It also has a Concise Market View at the end.

For those of you who have not already seen it, there is a lot of emphasis this week on the mid-to-late part of the week. That would be the case in any event, but is exacerbated this week by report and event displacements due to UK and European holidays. And that includes a lot of central bank and international finance influences beginning on Wednesday...

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