Charts I’m Watching: Jul 14, 2014

Sunday night ramp job (anyone surprised?) in force last night…  USDJPY, which collapsed Friday after ramping equities higher into the close, was pumped up from 101.23 to 101.52 by 3am EDT.

2014-07-14-USDJPY 60 0610

It’s another short-term bullish move in an otherwise still bearish longer-term picture.  But, the BOJ can keep this game afloat for much longer if they so choose.  And, the algos are definitely reinforcing its continuation.

2014-07-14-USDJPY 4hr 0600

ES fell in step and has tacked on 8 points since Friday’s close at the falling white channel top.  While the H&S Pattern isn’t officially kaput, it is hanging by a thread — especially given Yellen’s bullish testimony tomorrow and Wednesday.  In its place, an ever more convoluted IH&S pointing to 1982.

2014-07-14-ES 60 0555

This morning, Zerohedge ran an updated Merrill Lynch chart showing retail investors piling into the “market” as institutions continue to exit.  Retail participation is, of course, a contrary indicator.  When mom and pop finally overcome their fears from the last crash and jump in with both feet, it’s a pretty good sign that the party is winding down.  Here’s the chart:

Screen Shot 2014-07-14 at 7.43.53 AM

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