Pre-Market

It should be a volatile morning, likely rest of the day. With Stars, Dojis and Hanging Man candles, a gap up open (which almost always over the last 3 weeks has ended in a close down and vice versa) would be set to put in a bearish engulfing confirmation candle.

But what would cause this beyond what we've already seen? In one word, currencies.

For the 3rd night out of 4 the Japanese 10-year JGB market triggered a halt to trading with circuit breakers as the bonds fell and the yields soared, it seems Japan has said, "No Mas" this morning, just in Japanese.

The destruction of the Yen which has been driving the carry pairs higher along with risk looks to be set for Mr. Toad's Wild Ride as BOJ's Kuroda has said they have, "Done what is necessary and all that needs to be done for now" further adding their policies aren't meant to manipulate the price of the Yen. This sent the USD/JPY sharply lower (when the pair was trending higher the markets were trending higher through Q1.

The other carry pair the EUR/JPY was also sent lower and the risk pair EUR/USD was sent lower, it looks like the $USD is set to move higher, none of which are good for risk. In fact it was these same pairs that ramped the market overnight.

Since then, all of the Index Futures have headed lower as well. You see, there are still somethings the market "appears" to discount, although the Japanese had already basically said the same thing yesterday, just no as forcefully.

Kuroda's comments send risk off in FX...

 USD/JPY

 EUR/JPY

EUR/USD

The US Dollar Index has a positive divergence and has been moving higher as well, making the above pairs worse the higher it moves as well as the risk off tone.

Index Futures...

The Russell Futures look the worst so far, but Kuroda just spoke not too long ago so the currency damage is just getting underway.

 ES intraday  is heading lower


 NQ intraday has a large and a smaller more recent negative divergence it is heading lower from

And the Russell looks the worst.