Today should be interesting, ES futures closed at 1705 at 4 p.m. yesterday, hit an overnight high of 1709.75 and are currently at 1703. We do have actual economic data today as the F_E_D isn't shut down, at 8:30 the NY F_E_D's Manufacturing survey (Empire State).
This is what the futures in 3 different timeframes look like, check the 3C divergences and you'll see cause and effect, the NASDAQ's is incredible (NQ).
TF / R2K 1 min overnight, ES was more of a gentle slope down.
ES 5 min with the distribution we saw late Friday after the op-ex pin visible and not much better since.
NQ 15 min with a positive divegrence right in to the lows before last week's big reversal and again, not looking too good recently.
The carry pair of EUR/JPY has been driving the market, yesterday I suggested that no matter what, the JPY would see strength making it hard for any carry pairs to drive the market, here's the JPY...
The Yen 5 min has built a more solid foundation (lateral base) with a positive divergence stronger than yesterday so it looks ready to see upside, it is no longer moving lower, not good for the carry crosses...
And the 1 min Euro which sunk more than 100 pips as the German ZEW manufacturing survey fell from 30.6 to 29.7, that's the other half of the pair not looking goof to leave the EUR/JPY which was all up yesterday almost exactly with the market, looking like this overnight.
EUR/JPY 1 min overnight-the exact opposite of yesterday and the AUD/JPY and USD/JPY don't look much better, it seems to be up to the F_E_D at this point to keep the boat afloat or a deal, but who knows, it seems like a deal is already discounted so that may be a "sell the news event".
We'll see what the NY F_E_D says in about 30 mins, it's always an interesting report to DIG through,not just take the headlines, there's a lot of little nuggets in there, whether they can be trusted or not, who knows? Also we have earnings: J&J, CITI and KO.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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