Charts I’m Watching: Oct 15, 2014

USDJPY continues to struggle, giving up the .382 Fib overnight.  The next potential support is the SMA50 at 106.06 and the combination of Fibs at 105.5.

2014-10-14-USDJPY 60 0600The more troubling development for Mr. Market is the bond market.  The 10-yr note futures shot through the previous high overnight, complicating the prospects of a quick resolution to the market’s correction.

2014-10-15-ZN daily 0600

While ES successfully backtested its SMA200 yesterday, SPX didn’t quite make it — fading in the afternoon as has been its habit of late.

2014-10-15-SPX daily 0600

There are a number of potential downside targets from a Fib and chart pattern standpoint.  The keys remain the unraveling yen carry trade and interest rates.  I’d keep a close eye on each — particularly when the plunges take place during market hours in less controllable circumstances.

Note that while we might see a reversal today on the white Fibonacci grid — the .786, .886 or the 1.272 itself — we still have to deal with the grey grid, which suggests the possibility of a drop to the .786 at 1798 or the .886 at 1770.

I will be out of the office for the rest of the day, but will check in from time to time.  GLTA.

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