There is chatter this morning about Spanish and Italian yields on the wides, and given the continuing turmoil in Japan, I'm not surprised. Recall that one of the great promises of Abenomics was supposed to be that it would cause (force) Japanese investors to buy "everything." Stocks, bonds, futures, ETFs, REITS, all over the world. Well, it was just another hook.
The Japanese aren't buying. They're selling. Trying to raise cash. 35% poorer thanks to their government's decision to weaken (destroy) the yen.
And so what we are seeing in Spanish and Italian bonds is simply more selling . And in S&P futures overnight, more selling. One big interconnected Monopoly game. (Besides, no one here thinks Europe was fixed, do they?)
While the S&P futures are down, they're not out. No new low, and what appears thus far as a three-wave (non-impulsive) decline. Monday is a holiday, and there is usually an upward bias to the market today. I'm not counting on it, though.
The only thing I'm counting on is that the market has likely not reached its bounce target, nor its corrective target just yet. These targets, in my opinion, are 1660-1670 and 1600 respectively.
Here's some William Orbit because it's Friday. Have a good one.