Here's the USD/JPY correlation to ES, you may recall pre-market, it not only lifted the SPX futures (and others) overnight, but as I pointed out, since late last week it has been in risk on mode so it was likely not the announcement of the change of command at the Japanese pension fund from overnight.
This is USD/JPY (candlesticks) vs ES (purple), you can see the correlation overnight lifting Index futures, however the lever of USD/JPY has not been able to stem the downside from ES at all this afternoon.
Now it looks like the $USD may seen some downside and the Yen, may see some upside sending the $USD/JPY lower.
The assumption is GLD, GDX, USO are down on the stronger dollar, if the $USDX drops as the divergence suggests, we should find out soon.
The Yen intraday divegrence (positive) is not that sharp, but it is there.
The $USDX however has a much clearer negative divegrence that seems to be effecting price already. This would pressure USD/JPY and that wouldn't be of any help to the market at all, not that it is now.
Gold, GDX, USO, etc (legacy arbitrage assets like most commodities), "should" rise if their drop was truly due to a stronger $USD overnight.
Gold has some initial signs this may be what's going on, although I'm not making any changes (still holding NUGT).
GLD 1 min
GLD 2 min looking more impressive, at about 5 mins I'd consider acting on this, otherwise just sitting tight with NUGT long.
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