MLR - PMP 10/21/14

Published : October 21 2014 at 9:08 ET

Major averages headed higher yesterday on lower volume with the NASDAQ Composite poking through its 200-day moving average and the S&P 500 closing just a hair under its 200-day moving average. MDM favorably switched signals last week then again yesterday but could switch again if volatility remains elevated. That said, futures are currently up nearly 1% due to favorable QE news out of Europe that the European Central Bank is considering boosting its quantitative easing (QE) program by buying corporate bonds to further stimulate the eurozone’s ailing economy. According to analysts, the ECB could decide on the purchases as soon as December, and the first purchases could occur in early 2015.

The boost in US premarket futures would further reduce the current levels of volatility, and put both the S&P 500 and NASDAQ Composite squarely above their respective 200dmas.

This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.