Propping up the Markets

We talk a lot about the markets being “propped up.”  It’s not just an expression, as the following charts for the Nikkei, USDJPY, DX and 10-yr note will affirm.  In fact, even a casual glance at the charts below should destroy any notion that these are “markets” any more at all.

Note the dashed, yellow neckline on NKD — even following the death cross back on Mar 28.

2014-05-19-NKD daily 50-200

USDJPY, likewise, has been propped up above the Feb 4 lows, with seven stick-saves off the dashed yellow neckline.  The SMA200 finally arrived today to lend additional support.

2014-05-19-USDJPY daily 0552

The dollar’s latest death cross came way back in September.  But, it has been propped up at roughly 80 at least a dozen times since late 2011.

2014-05-19-DX daily 50-200

The 10-yr’s rising red channel midline gave up the ghost on Apr 9 following its death cross on Apr 3.  Since Thursday, it has been propped up above the TL connecting the July and October 2013 lows.

2014-05-19-TNX daily CU

Each of these critical components of the yen carry trade are due for another bounce, providing a boost to stocks — which is, after all, the object of the whole exercise.

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