Another mixed night in Asia and largely an up day thus far in Europe among the majors. The yen looks like it's forming a triangle that may resolve to the downside, but one that may mark the final flush of the sequence for the near term. 92 could be be a test area. I would look to be a buyer of USDJPY there.
Meanwhile the Aussie dollar has rolled over from what appeared to be a bounce back to the 98 area. Even if it decides to make it there, it now appears there could still be more downside after.
Reuters reports Biggest protests in 20 years sweep Brazil. No coincidence to anyone familiar with socionomics, since the Bovespa has been in decline since 2008 and recently broke below 50,000. This is a huge heads up and was the subject of the following post almost two years ago:
Brazil: The World's Largest Canary
I doubt all these events will impact the S&P today. But they are good to be aware of from a macro level so that when the market decides to makes its move, opportunity can be seized.
It feels like the futures marked time last night and not much else. I'm still interested in 1655+ and now perhaps just below 1620 as the market is starting to feel triangular. Perhaps it mirrors the yen and makes a near-term low before a larger bounce. It does seem to be acting heavy just above the 50-day moving average which is not a good sign. The 200-day moving average is currently 1524 and could rise to give support at the 1536 area if given enough time.
Many seem to be anticipating this, which is why I still allow for a fake to the upside with my plan. The longer it doesn't break down, the higher it can go.
It works to the down side too, however.