Daily Wrap

Well today was exactly what I suspected, lateral chop, the importance being on "lateral" as that's what's needed in a reversal process as I illustrated earlier. There weren't any major surprises, although some were surprised that today's POMO had no effect.

I have maintained from the start that in my opinion QE was nothing more than a stealth bank bailout as the 2008 bailouts were not popular, one item suggesting this may be the case with QE ending is the massive build in bank reserves as a second round of foreclosures is expected with a lot of 5-year HELOCs resetting.

Spike in bank reserves, the free money is over.

Everything looked pretty normal today or at least as suspected.

 HYG lost more ground which is significant.

S

 Professional sentiment also lost more ground

This is the Yen today, flat and choppy as it needed to be, but...

 The 30 min chart is building even stronger, at last look the USD.JPY has a pretty negative signal so we'll see what it does overnight.

There was no dominant Price/Volume relationship today.

I'll be looking in a few hours at futures as the USD/JPY has deteriorated since the close.