USDJPY took advantage of yesterday’s FOMC minutes algo melt-up to tag our 107.50 target. That is, almost tag it — coming up 2 pennies shy. Maybe it was a meaningless coincidence, or maybe there’s going to be a little shake and bake this morning. Ditto with 10-yr notes futures, which at 126’285 came up just shy of the 126’310 target. Caution is warranted.
SPX stopped just shy of the .886 of its drop from 1977 that began Tuesday — smack dab in the middle of the moving averages.
The circumstances continue to remind me of Feb 5, 2014. Though it’s hard to ignore the resemblance to the algo-rally on Oct 3. IMO, this is a wait and see kind of day. I’ll be taking my cues from VIX and USDJPY.
VIX tagged our .786/channel top combo target, which suggests stocks might have bottomed for now.