It has certainly been a rare occasion for the NQ vs SP futures spread to breach the 50d MA. How rare? Well so far in 2020 its only done it once before that was back on 3/16/20 when the Nasdaq dropped some 860 points, which sounds large but considering the prior day it was up 699 points, that should put the move into context. Anyway here is Magnelibra’s chart of this spread in contract to contract dollar value. We believe that many fail to watch markets in this manner, rather they follow it in ticks or points and chart it that way. We inherently believe in following the total monetary value and that’s something we have done for decades:
The swift reversal off of the prior highs shows how fabricated the entire move was and purely based upon a certain funds ability to overwhelm markets. This is an inherent danger that Magnelibra Econemotions has consistently warned about and its a direct byproduct of global QE. We know for certain that QE concentrates wealth and enriches a very few at the…
