No POMO today, and more horrid news out of Japan. As we’ve been discussing for quite some time [see: Sayonara Abenomics] Abenomics is doomed to fail. Last night, we received more hard evidence: consumer spending plunged 8% and inflation soared to 3.4% — well above Abe’s 2% goal. More easing is supposedly off the table, and another 25% tax increase is on the way. No way to run an asylum…
Bloomberg does a good job of summing it all up HERE.
The Nikkei futures are off 200 points, and USDJPY is currently down .30, trading well below the SMA200 and nearing the .786 Fib level (101.24) we discussed the other day.
Oh, did I mention there’s no POMO today?
UPDATE: 3:10 PM
45 minutes left, and no run at the SMA200 (101.713) yet? Uncharacteristic big swings in equities in what is usually traction mode time for SPX. Either USDJPY gets its butt in gear real quick or it could be a ugly close.
Why? The last time USDJPY closed below the SMA200 was Nov 13, 2012. NKD was 9,230 (now 15,120) and SPX was 1376 (now 1948.)