Interestingly this morning , all of yesterday's losses in just about all of the averages have been erased on a pretty impressive overnight rally along the lines of the start of the reversal from yesterday's closing candles/divergences.
Apparently overnight the Bank of Japan and the N.Y. F_E_D stepped in to help the PBoC with its problem of a crashing market. All 3 central banks apparently interviewed at the same time last night and interestingly two of them, the Bank of Japan and the F_E_D were the two currencies we expected to move, Yen down and USD up which is exactly what happened...
USD/JPY 1 min with yesterday's close at the red arrow and the multi-Central bank intervention at the white arrow sending the FX pair higher which also saw the EUR/USD head lower as we have been expecting.
This had the effect of sending Index futures soaring...
USD/JPY in candlesticks vs ES in purple overnight.
As for the charts right now...
This is ES 1 min and the 3 accumulation areas are from yesterday, to the right is the overnight with a slight negative divergence that looks to be getting some support again.
As for 5 min charts, only the NQ has a small positive, so I'm still not expecting a huge bounce, but the bounce we were expecting looks to have clearly started and via the instrument we expected.
Neither the $USD or the Yen appear to have any serious damage intraday that would effect USD/JPY adversely.
I don't know if it's coincidence that all 4 currencies and two pairs we expected to move the market did move the market or we were seeing something that had leaked to smart money, but it went down exactly as we have been forecasting with EUR/USD down, USD/JPY up and our bounce started.
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