Investors woke to the stock market today with a surprise! The SNB announced overnight that they will peg the Swiss Franc at the 1.20 level by buying foreign currency in "unlimited" quantities.
Markets reacted swiftly with the USDCHF making huge moves at the announcement.
This is basically the Swiss saying that they are now joining in the to the bottom. No longer do they want the deflating US Dollar driving up their currency, they will now use all their resources to print more Francs and similarly flood the market just like Bernanke has been doing.
The markets opened up sharply lower but managed to close a 200 point drop. Leadership stocks were looking good with AAPL managing to close in the $377 range, with striking distance of the recent highs.
The markets looked prime for a move higher tomorrow, but macro economic fears will most likely bring about a second leg lower later this week or early next week.
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