A.M. Observations

Remember that CONTEXT ES model I ended last night's post with? Take a look after overnight...

 Now the model is only about 2 points rich as overnight trade narrowed the model's gap.

Why?

Overnight the chairman of a board that makes recommendations regarding Japan's Government Investment Pension Fund said they should add 18% stocks, reduce bond exposure now, reduce domestic bonds by  52% and local bonds to as little as 35% and said the government will act on the panel's advice.

The only hiccup is this was already thrown out there over the summer and GPIF has done what? Nothing, just something to sink the Yen overnight which lifted the USD/JPY below.

 1 min chart of USD/JPY

Which in turn lifted Index futures

ES 1 min lifted about 7.5 points since yesterday's 4 pm print.

However all of that will mean precisely NOTHING in about 10 mins. when the Non-Farm Payrolls come out...

Interesting about the CONTEXT model though.