I hope everyone had a happy Easter holiday.  We’ve had a relatively quiet Sunday and early Monday in the markets — with the futures up only slightly despite a strong rally in the USDJPY.

Could be that investors don’t really see the currency pair going anywhere — as the Nikkei’s price action doesn’t support it.

We have leading economic indicators coming out at 10AM, and today’s POMO purchases are scheduled at $3.25-4.0 billion.  Lots of earnings are also due out this week — 150 of the S&P 500.

Last Wednesday and Thursday had all the hallmarks of a breakout, but on very weak holiday style volume.  In addition, VIX fell to only the .886 of its latest rally and 10-year notes rose only to well-defined resistance.

In other words, the breakout wasn’t as believable as it could have been.  Trade safe.