Short-term top in the ES … looking for clues

Check this out:

If This Report Is True, The ECB Is Actually Getting Close To Firing Off The Bazooka
There’s a story by Reuters citing the latest edition of German magazine Der Spiegel, which is reporting that the ECB is considering setting an explicit top yield threshold for peripheral nation borrowing costs at its meeting in September.

In other words, ECB chief Mario Draghi would come out and say something like: “Italy’s 2-year borrowing costs shall not be more than 300 basis points above Germany’s 2-year borrowing costs, and if it rises above that level, the ECB will come in and press it down via bond purchases.”

It would be an incredible game changer for traders to know that the ECB was sitting there on the bid at a certain level, standing ready to buy sovereign debt.

http://www.businessinsider.com/ecb-interest-rate-spread-caps-2012-8

OK.
Great.
Bullish.

BUT … What’s interesting to me is the TIMING of this article … published:

Aug. 19, 2012, 10:35 AM

The US equity markets have been going up for 6 weeks – it just seems to me that this sort of article is a marker of a top (short-term, of course, not talking end-of-the-world at all). Just like a couple of months ago I highlighted the article about ‘the coming oil crash’, an article published after the oil markets had already dropped nearly 30% , just seems to me this is a similar sort of thing.

Good to see some news out of Europe – coming back from holidays? A few tape bombs would liven things up a bit!

EDIT – Added to at 0731 GMT 20AUG2012
I really should add that many of the smartest people around are arguing that the past week and half or so of sideways to mildly up in the S&P IS/WAS the correction. Its a pretty reasonable point. In the absence of headline bombs it could easily just keep on grinding higher…

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