From yesterday's post, FX-Market Correlation / Divergence here's the USD/JPY vs ES/SPX Futures correlation...
USD/JPY in candlesticks vs ES in purple since the start of the bounce at the green arrow and the rest of the post was about the divergences in $USD and Yen futures and how it looked very high probability that the FX pair rolls over and takes the market with it.
There was some F_E_D and BOJ news that seems to have been the catalyst for the roll, but this was this morning and the divergences were apparent last week and so much so yesterday they got their own post so either FX traders and smart money in general have a LOT more leaked information than you'd think possible or it has simply been a process f them noticing the same type of selling we have been, thereby exacerbating the divergences, either way, the USD/JPY did exactly as expected and the market acted exactly as expected. If this were the only thing we had noticed it would have been impressive, but there has been weakness everywhere even before the market started to bounce.
Here's this morning's fall in the carry cross on $USD weakness, JPY strength which is something we also saw overnight covered in this morning'sA.M. Update.
1 min overnight and this morning chart of USD/JPY and ES doing what was expected yesterday in the FX and Index futures' updates.
This puts every major market average red on the week and as far as cycles go, you could say we are transitioning from stage 3 to stage 4 decline. That doesn't mean there won't be choppiness, just as there was on the way up, but markets generally fall a lot faster and harder than they climb.
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