Second Day

Again the US markets are closed today, I did read they are planning to open the NYSE tomorrow.

Overnight China conducted the largest reverse repo on record of 395 bn yuan. Not to be outdone by this massive injection, Japan came out in the middle of the night with an announcement of an additional 11 trillion yen of assets to be monetized or their 9th QE program. However because consensus expected more from the BOJ, there was no stimulative effect at all as the USD/JPY plunged immediately, the falling dollar helped ES rise from the overnight lows and back above 1400.

Otherwise Spanish and Italian yields are down, no matter what the news in Europe, those are the barometers.

The bottom line thus far is someone is protecting ES 1400 and EUR/USD 1.29 until the markets open, but considering we have had 5 days of this and only 2 days of the markets being closed, it seems likely that our idea of a rangebound market and upside reversal is holding water.

 ES opens last night at 6 pm for the overnight session, once again 1400 is defended for ES and the S&P.

 Defense of 1400 this week so far.

The open of FX trade this week and the defense of Euro/USD $1.29, which is essentially defending the market.

I don't know that the PPT did or did not step in as the BOJ action sent the $USD lower, but I have a feeling they are on call just in case they need to spend a few million and send ES back above 1400.

ES will close again at 9:15 a.m. EDT.

More as it develops