It feels like ground hog day, second verse same as the first.
Again USD/JPY remains in a range overnight just above the 102.20 line of defense in premarket it looks like it might threaten that range once again like it did yesterday...
USD/JPY overnight...
That sent ES to new highs which gapped up European equities until they faded and landed in the red as ES also lost 6 of the 9 points it gained overnight which currently put us right about here for the SPY on the open...
Right smack dab in the middle of the range from the last two days, however as mentioned, it looks like USD/JPY is getting a little aggressive on the downside, it's a bit early to say, but...
that's a fast drop toward overnight support at $102.20, remember yesterday's test right down to $102 premarket.
The open and continued pump and dump is no surprise, you saw the QQQ chart's intraday positive, but I also would warn against being lulled in to complacency or a false sense of market strength and I'd be using this time and this area to further your strategic positioning, when things change they will change fast, remember this is still out there...
That's an even worse 60 min SPY leading negative divergence,
I don't fool around with these and I don't ignore them, be careful with assumptions about what you see and complacency, perceptions change very fast (remember, February 5th everyone was as bearish as we have seen them since early 2009, a week and a half later they're as bullish as ever... The market's true underlying tone takes years to establish, it doesn't flop around in weeks.
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