The most interesting thing that happened overnight is the Japanese Yen strengthened against the US dollar, causing the USD/JPY chart to finally slip below the Fibonacci level that had provided support for so long:
Our overseas friend Kuroda isn’t having a very good year. Quite against his wishes, the Yen has been strengthening pretty much the entirety of 2016. We can see the upside-version of that with the USD/JPY below. I will whine once again: it’s too bad U.S. stocks aren’t tied to the waist to this like they used to be, otherwise the ES would be down 25 right now instead of freakin’ 3 points.
Only the Lord knows where the markets will be once I wake up for the normal trading day, but tonight, it’s a mad, mad, mad, mad world. Kuroda pretty much disappointed everyone, in spite of throwing trillions and trillions more yen at buying ETFs (which, let me tell you, is insane), but as ZH put it:
“So to summarize, Kuroda left rates unchanged, left QE unchanged, implicitly raised doubts about the effectiveness of the world’s monetary policy machinations.. and increased the stock market ETF buying to make sure that the illusion of normality is maintained.”
At first, the ES and NQ fell sharply, and then they went green – – which made me want to throw my laptop through a window – – and then they went red again. I’m just going to let all this wash out at this point and stop watching. I guess I should at least be glad the ES isn’t up thirty points right now. The Stockholm Syndrome has completely taken effect.
Good Lord, this market sucks in so many ways. Here, let me show you something that looks like science fiction. This only happened a month ago, and it shows the ES plummeting 130 points in just a couple of trading days:
The yen is going INSANE tonight. Thanks to announcement about a $27 trillion (yes, trillion) yen package that the pinheaded Bank of Japan wants to slosh onto the public. the USD/JPY rocketed higher, blowing out stops all over the place. Then, bang-a-boo-bang, it completely reversed.
Besides crude oil, there actually is one other market which has been relatively steady, and that is the cross-rate USD/JPY. There was a time not long ago that US equities and the Yen were utterly joined at the hip. For instance, as I’m typing this, the USD/JPY is down 1.33%. In the before-time, that would have meant the ES would be down, oh, about 27 points or so right now. What is the ES doing? Oh, it’s unchanged. All the same, the Yen is still our friend: