As discussed yesterday, the dip at the close was yet another head-fake.  Is it any wonder volume has dropped to laughable levels?  It was followed by the USDJPY driven algo which kicked in around 4am ET.  Keep an eye on USDJPY this morning, as it just tagged a TL off the Jul 3 highs and might have trouble punching through during market hours.

Also in a position to break out or break down: ESU4.  It topped the IH&S neckline we’ve been discussing (also overnight, naturally.) It targets ES 2005.  But, remember, these patterns have been extraordinarily unreliable of late.

We have CPI at 8:30 and Existing Home Sales at 10:00.  No POMO today, but a big day tomorrow. GLTA.

UPDATE: 8:50AM

USDJPY in plunging, 10-yr rates are plunging, EURUSD is soaring — but ES is being propped up like there’s no tomorrow — defending that IH&S neckline after gaining 3.5 points on the news that (IMHO) we’re entering stagflation territory.

Looks like another day of the “market” being run by the programmers…