We are through the rough patch of this correction, and volatility will go down as traders and investors get more comfortable with the new trading range and lessening volatility. There should be a choppy up move over the next two weeks all the way up to the FOMC meeting on September 17, where the Fed will sound as dovish as ever. Draghi and his intense dovishness this morning was the preview of things to come for the Fed. There is no way they hike rates here, and the market knows this, so they will rally into the meeting expecting soothing words from Yellen.
Draghi is helping the cause by dropping Bund yields, which in turn help to drop Treasury yields, which is bullish for equities, all else being equal.
Crude oil should follow equities higher now that it has reset to be more in lockstep with S&P movements. BTFD for the next two weeks. Yesterday's lows of SPX 1920 are a raging buy anytime over the next few trading sessions.
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