SPX plunged to just past our 1897 target yesterday, putting in a massive reversal that left it green on the day.  The reason, as most now recognize, was the 6% spike in CL.   We’ve been writing about this a lot lately [see: Manipulation Becoming Laughably Obvious.] 2016-02-25 CL 0615But, of course, it’s no laughing matter.  The stock market isn’t a market anymore when central bankers or their lackeys can essentially set the level of the SPX or DJIA by throwing billions into the oil futures market any time they get a little nervous.

Today, we see another example of that.  On a day when durable goods order data are so far above expectations that it practically screams “rate hike,” we see the market rally again on the opening.  Why?  CL’s tag team partner: the yen carry trade.2016-02-25 USDJPY5 0615The USDJPY — which also rallied sharply yesterday — has continued on above the bottom of the purple channel from 2011, broken out of the falling red channel, and broken back into the falling white channel that has guided its demise since November — all, to turn around what could have been an ugly open.2016-02-25 USDJPY v ES 60 0615Not to worry.  The “market” has a lot of back-filling to do.

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