Charts I’m Watching: Jul 8, 2014

USDJPY is back below the SMA200.  The assumption has been that the BOJ would maintain the pair in the 101-103 range going forward, but this development is clearly making traders nervous…

 

USDJPY daily 0615

…as is the strong reversal in 10-yr notes back into the falling channel.

 

2014-07-08 TNX daily 0600

Taking a look at VIX, it’s not hard to imagine a reversal of the market’s bullish fortunes.  Yet, TPTB have done a very good job of keeping the rally on track in spite of the glaring technical discrepancies.  I imagine SPX will get a bounce at its SMA10 down at 1967.

NKD is finding support from the channel it has been tracing out since its break out in late May.

2014-07-07-NKD 60 0700

 

UPDATE: 12:40PM

ES and SPX are both closing in on their SMA20’s (1951 and 1957), with ES’s .618 nearby at 1952.29 and SPX having already tagged its.  USDJPY is aimed at the .786 (101.45) or .886 (101.34), and NKD seems intent on 15200.  So, there’s a pretty good chance that ES/SPX reach their SMAs if the dip buying algos don’t get impatient.

 

 

 

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