If you want to think logically about what news is catalyzing market movement through these cycles things get pretty interestingâ¦ The jobs report in both of these last months acted as a âcurrent catalystâ. It catalyzed market movement within the cycle at the moment of the news releaseâ¦ However, the market is most predictable and easiest to daytrade when moving because of a future or past catalyst. The two rallies out of that divergent bottom last month were catalyzed by the upcoming Bernanke speech, and then the upcoming Fed Announcement. Then recently the market was moving because of past catalysts. There was a follow-through of a few days after the Merkel announcement, and then a follow-through after this months jobs report. Currently the market is being catalyzed by the upcoming Bernanke testimonies this week. A lot of catalysts for market action are market neutralâ¦ They donât do anything but accelerate the movement of the cycle/trend in question. Some serve to accelerate/decelerate momentum in a cycle. I can summarize this in the way an average Joe can understandâ¦ If there is big news coming up in a few days and the market starts trendingâ¦ The trend can move FASTâ¦ Bears get very scared of the upcoming news and bulls jump in like crazyâ¦ Wellâ¦ Itâs kind of funnyâ¦ A future Bernanke speech or FOMC/Fed meeting is not just a neutral catalyst. Itâs actually slightly a positive catalyst. People have memories tied to fed announcements. Their memories in recent years of these events have all been positive. QE2, QE3, Twist, etcâ¦ Fed announcements have made the bulls money and crushed the bears. Bears fear these events and bulls get euphoric before them. Their memories of EU news events have mostly been negative in recent years. Think about it and it all makes perfect sense. If there is something approaching in the future that has caused peoples money to go negative in the past, it brings on fear. If there is something approaching in the future that has made them money in the pastâ¦ It brings euphoria. The bottom line is you can just forget about 90% of news and just follow the technicals... There are only a few things that really matter. The Fed, the EU, and the monthly jobs report. Which... I really don't get why it catalyzed market action anymore really. It doesn't matter in the least for the financial economy. The real economy and the financial/debt/fx/etc markets are more like cousins than family.