CL is taking a dive this morning…
…as EURUSD continues to back off after reaching our upside target…
…and USDJPY clings to safety of the .618 Fib at 120.11 — providing cover for all manner of “adjustments.”
The eminis are up 5.75 primarily on the yen’s weakness and Friday’s algofest which saw SPX break through overhead trend line resistance and rise above the neckline of the H&S Pattern it completed the day before.
continued for members…I’d like to say we’ll see no more than a backtest of the dashed red TL from October, but SPX has broken through it multiple times over the past several weaks — almost always based on currency manipulation.
The best thing bears have going for them would be the continued weakness of the euro. In the past few months, it has been hard for SPX to rally in the face of continued weakness in EURUSD.
The next best thing is the likely reversal in TNX we called last week. But, the normal inverse relationship between rates and SPX has been broken of late by the “market’s” reliance on currency driven algos and the artificial floor the Fed put in at 1.85 during March-April.
UPDATE: 10:17 AM
SPX just reached the .886 retrace of its decline from 2125.92. 
USDJPY is starting to loosen its grip on 120.11, and CL has leveled off. Apparently, the coast is clear for SPX to settle back to reality — or, at least to the SMA10 at 2106.