Charts I’m Watching: Jun 20, 2014

Quad-witching day, but no POMO.  Should be interesting…

USDJPY is threatening to break out, but neither IH&S has played out yet.  A break above the red TL/yellow neckline should be eventful for stocks.  A potential run up to the .786 or .886 should usher in new highs.

 

2014-06-20-USDJPY 60 0600

 

If USDJPY reverses off this resistance instead, stocks could flesh out one of the rising channels.  Yesterday was one of the few days lately when SPX didn’t exceed its .886 on the day (after the previous day’s FOMC rally.)

2014-06-20-SPX 15 0600

Someone forgot to turn on the Dow’s algos, which didn’t share SPX’s enthusiasm for Yellen’s non-answers.

2014-06-20-DJI 60 0600

UPDATE:  EOD

Pretty weak close.  Equities tried to rally at the close with the usual VIX monkey-hammer, but couldn’t even top the session’s earlier highs.  USDJPY was no help at all, failing in the crucial last hour or so after topping the neckline earlier in the day.

USD weak against the euro, too.  Could the rest of the world’s efforts to ditch the USD as reserve currency be bearing fruit already?  Very interesting…

2014-06-20-USDEJPY 15 1300

 

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