This outlier of a move is beginning to become a serious matter. The yen is markedly higher for the 5th straight day and really applying some gusto to the move, higher by more than 1.2% now.
S&P futs are sharply lower.
Gold is the real deal in 2016. Aside from treasuries, nothing has been more consistent.
Crude is mildly lower.
It’s a classic risk off tape, with treasuries firming, gold soaring, Yen spiraling higher and stocks lower. The market has been very resilient and we did add 75 NASDAQS yesterday. Therefore, unless we give back all of yesterday’s gains, today’s pullback will be viewed as healthy, rightly so.
But the Yen move higher isn’t good for Japan, currently at a 17 mo high.
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Didn’t Goldman just say to sell Yen
I see two things with the yen.
1) Today’s move looks very much like a capitulation move.
2) I don’t see support anywhere until 105.50 [61.8% of 2007 high to 2011 low].
It’s your classic Who The Hell Knows market.
In related news, DXY is sitting right atop pretty well-tested support at 94.