Charts I’m Watching: Oct 9, 2014

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.

2014-10-08 USDJPY 60-min 0720

SPX stopped just shy of the .886 of its drop from 1977 that began Tuesday — smack dab in the middle of the moving averages.

2014-10-09-SPX daily 0500

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.

2014-10-09-VIX 60 1300

Comments are closed.