Following the 5th sell off in a row, the S&P 500 futures reached the SMA200 again yesterday.  It started with a sell off in USDJPY (yen strength, dollar weakness.)

So, it’s only natural that when the panic button was pushed, it activated an overnight ramp job in USDJPY……and, thus, ES.  Look carefully, though, and you’ll see that ES merely backtested the broken white TL off the 2009 lows and is drifting lower. It correlates with USDJPY’s backtest of the red channel midline.

In other words, this rescue will likely be something less than an actual reversal.  Pop and drop, anyone?continued for members…

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