The Yen May Help Out a Bit Too

A bounce on a day like this is almost a foregone conclusion, especially if it's on  fundamental data that the market had not discounted such as the BOJ considering how to start tapering a 2-year QE program that is less than a year in to it.

The bounce isn't a big deal or a problem, in fact it's helpful with information like how far did it do, is it creating a downtrend because trends are like waves (back and forth), how much confirmation or distribution was present during it, which sectors lagged the most and allowing us opportunities to open or add to positions.

There's VERY, VERY little in the averages themselves or Index futures that would suggest a bounce, most of that in the way of probabilities in in the VIX short term futures and now maybe the Yen as this is really what today's trouble is all about.

Here are the charts that suggest a bounce and how far they go, which is to say the same thing as before, this market right now is extremely weak, it has been on long term charts, but now it is insanely weak on shorter term charts like I've never seen before, but I've never seen trillions of dollars pumped in to the market either by the F_E_D and how that all unwinds, the closest model would be 1929, but that's not even realistically close.

 VXX 5 min very strong, I pointed this out yesterday, it has added to that strength today.

 Only the very short term charts are saying pullback which is bounce for the market.

The Yen of course has been ground zero for us lately...

 We now have a 1 min intraday negative on the Yen

 However the 5 min chart (as mentioned last night along with the 15 min and 30) is very strong and broken out of an inverse H&S bottom.

This 30 min chart has been positive all of 2014 and the Yen has been trending up since the 2014 low as the carry crosses are all trending down since the start of the year.

This additional information just tells us what I've already said, extremely weak in the market, probably a good time to fill out core shorts on any price strength.