Bank of England Throws Money at UK Economy

The Bank of England cut rates by 25 bps, expanded its QE program by 60 billion pounds, and started a new 10 billion-pound corporate bond purchase plan. and bega a corporate-bond purchase program in the aftermath of the Brexit.

Traders expected the cut. However, they only expected a 50-billion pound increase in the QE program.

The BOE took a massive hack at growth forecasts, now seeing 2017 GDP at 0.8% vs. 2.3% before.

The pound is the worst performing major currency while the FTSE is up about 1%.

The 30-year Gilt is now at all-time record lows, while gold just pusehd into the green.

SPX futures popped up about 10 handles are in modestly positive territory. TLT is now up about 80 cents.

Of course, a lot of folks are out complaining about how markets are being pushed higher by central bank machinations rather than fundamentals.

But we must deal with the hand we're delt, not the one we want.

Markets like stimulus, plain and simple.

That said, we could end up in another holding pattern today ahead of tomorrow's big NFP report, though keep in mind, we've had some very stealthy bull action thhe past couple of days.

The SPX hasn't done much, but we saw some very strong action in small caps and biotech, and a nice turnaround in oil yesterday.

I get the feeling a big NFP report could push SPX over 2200 tomorrow. The market feels like a coiled spring, and a big up spike could force bears to capitulate, putting in a real short-term top.