Last night’s ramp job on the back of USDJPY, which sliced through the 100 and 200-day moving averages like they weren’t there, took ES most of the way. The 4% GDP (ex-items?) print did the rest. ES is sitting at an 8-pt gain prior to the open.
Caution is warranted, as yesterday’s close marked the 3rd H&S Pattern in a row to complete without playing out (so far.) The USDJPY/NKD ramp is BS, of course, as Japan’s industrial production fell 3.3% last month (versus 1.2% expectations.)
Still, the pair broke out. If it can remain above the SMA200 long enough for the other averages to turn up and break the bearish alignment, it could drag stocks higher. And, why shouldn’t it? With the BOJ depressing the yen and actively buying stocks, it’s only a question of whether or not it fits their plans.