Yesterday’s targets are still intact with the exception of USDJPY, which broke down in order to accommodate SPX’s SMA200 backtest.If this is a garden variety backtest, the bears have nothing to get excited about other than a nice 50-pt short trade.  Note that the last time USDJPY broke down, however, it turned into a 190-pt drop.  So, watch closely as SPX approaches 2762 (ES 2764) — ideally around 10:30AM.  Yesterday’s gap is slightly lower at 2760.88 (ES 2764.75.)Most of the attention this morning is going to the 2s10s yield curve, which is approaching inversion……as TNX approaches our downside target. If the SMA200s don’t hold, things will get very interesting very quickly.

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