It was remarkable to see the USD/JPY skyrocket yesterday evening. We were throwing a big Halloween party at my house, and I peeked at my charts from time to time, and things just kept getting better.
But is this just a pullback? It could be. The Euro and the ES have both pulled back to what could be viewed as healthy levels for a normal retracement in the midst of continued bullish moves. In addition, this big lift-off on the USD/JPY is just one of a series, none of which have amounted to Jack Squat.
The ES needs to break 1223 to give the bears a fighting chance. Until then, I am viewing this market action with suspicion, in spite of it going in my favor for now.