As we discussed Tuesday, the USDJPY is the key indicator to watch. And, it’s off to a good start…

UPDATE:  10:05 AM

Look for the slide to continue, targeting the gap close at 104.33?  But, that’s just the purple .618.  The purple .786 or .886 take the pair all the way to the channel bottom and make for a more interesting first day at a decline of 1.31-1.46.

continued for members…

UPDATE:  2:30 PM

USDJPY has reached a nice spot for an interim bump — channel line and small scale 1.618.

But, the other targets mentioned above should be more appealing.  And, that probably means a little lower on the first leg down for SPX/ES.  Where?

I like SPX’s original target of 1823, which could be construed by the bulls as a backtest of a broken Fib line.