Interestingly the USD/JPY looked like there was some Yen goosing early today in pre-market, perhaps to lift futures, although they opened right where I'd expect for an op-ex pin.
In any case, the loitering period for the carry pair is over as I showed several times the last 2-days and it should be making a new low, ES is severely dislocated and needs to revert down to the pair.
Even though a ramp in USD/JPY earlier today produced no effect on Index Futures, a decline in USD/JPY right now is sending the market lower, that tells you something.
The bear flag in the averages was not anything like the bear flag that got us here, it couldn't even produce a positive divergence on a 2 min chart so I think it's an intraday event, but the FX pair seems to have some influence, especially given the amount of intraday deterioration today in the averages on top of the week long deterioration.
5 years ago
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