Yesterday was a great reminder that no matter what the economic news, the “market” is no longer in touch with reality. Between central banks and the HFT/algos suckerfish that feed off them, true price discovery is a thing of the past.
Yesterday’s 24-pt reversal at 2091.51 had nothing to do with the economy, politics, or the Kardashians. The diminutive trend line we pointed out at 9:40 (below, in yellow) connecting the eminis’ last two lows was all it took.
It’s an apt intro to this morning’s USDJPY chart. Despite having fallen out of the rapidly rising white channel, it has somehow managed to stay just north of the rising red channel midline. In fact, every SPX dip we’ve seen over the past two weeks has prompted a quick retreat to the safety of that bullish refuge.
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