Mario Announces That Gluten Free Pasta Will Cure Diabetes in Europe

Another "bazooka" came out of Europe this morning, though based on the various reactions across equity markets it hardly seems like a panacea and more like an attempt buy Draghi to argue that the monetary equivalent of his gluten free pasta will cure deflation diabetes across the pond. 

To be sure, those who tried to get cute and lean into Euro shorts before the presser are in some pain now, as the Euro/Dollar never really triggered a fresh leg down and is now taking out upside stops (similar comments apply to the FXE, Euro ETF basket). 

As for equities here, the small caps reversed well off the morning highs and are now toying with a breakdown from the sideways channel which has encompassed a good deal of churn this week. We are keying of $106.50, seen as lower trend on the 30-minute IWM chart, below. 

If we hold below there, new longs should probably be put on the back-burner into the weekend.