Squawk Morning Briefing: When Germany Sneezes…

As Monday’s day session was coming to a close, prices were testing the upper limits of our reversal ranges for U. S. equities.   However, they were doing it on a weak push up as we discuss in our DJIA video today.  Our YM video covers the impressive decline in overnight futures and reinforces the idea that the weak move up in our target range may have ended a corrective bounce that began a week prior.

The latter part of that overnight move may have been fueled by quarterly GDP flash reports out of Europe.  The most striking was Germany showing only 0.1% quarter on quarter growth, far short of estimates.   Most of the moves taken to support questionable European economies rely on the largess of Germany, the continent’s economic powerhouse.   Anyone who had concerns about Europe in the past few weeks should have greater concerns if the German economy stops growing.   That’s what makes this news so important.

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