Go Figure

Futures are up this morning on a joyous rout in the US dollar. So the evening star doji set up that was formed yesterday as the S&P reversed off the 78.6% sell retracement level is likely to fail in delivering its bearish message.

Nearly everything in the futures market looks great today. Not surprising since they're all priced in dollars.

Regardless, a strong open today should close the gap at 1588.85 that seemed like such a long shot last Friday. What comes after, who knows. I will be looking for a failure or some sort of retracement at least. In a 60-point trading range, a lot can happen.

Yesterday's trading marked yet another tick and A/D divergence as buying pressure seemed to wane. However the credit markets are showing leadership and are pointing higher for the time being. And the chart of the VIX looks awful.

I have peeled off the SPY 156 calls but am holding the 158s and am short against them with SPXU, getting shorter. Still watching China which was down another .86% last night while the FXI took off to the upside. Kind of a metaphor for things of late. Go figure.