The small caps are severely lagging today, only up 0.4%ish right now despite the big move in the large caps. Makes me think large institutional players got "scared into a trade" this AM on the Draghi comments and went into whatever they could get in quickly, hence a run into large caps.
Some "sources" from the ECB have stepped back a bit from the comments saying this is not different than what he has been saying for months, but the market is taking it as "imminent action". Perhaps Draghi does not get that the entire globe waits on every phrase and even the slightest change can move markets by trillions of dollars…. It would seem hard to believe that but that's the only reason I could see anyone from the "inside" trying to backtrack.
Bigger picture the market is right smack dab in the trading range it has been in for the past 2 months, with violent moves both ways. Many of the gains of the past 2 months have been overnight gap ups on headlines/news/rumors while the selloffs have been during the normal market day. It remains incredibly whippy… just Tuesday night IBD put the market back in correction and now we get this rally. Par for the course this summer.
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