The collision of global markets and social mood

Wednesday, January 6, 2016

Wednesday -- Korea Goes Mini, S&P Freaks

S&P E-mini Futures:
Down hard, again.

China data spooked once more, crude oil is flipping people out, and Korea has gone nuts, having successfully tested a miniaturized hydrogen nuclear bomb -- you know, like a suitcase.

That's probably the fear, anyway.

Another Chinese yuan devaluation is sticking to export countries.

Watch the yen, which for now has more bets against it than the yuan could dream of. USDJPY below 118.055 could become a rather large market problem (though it seems to be firming today).

Commdolls AUD and CAD down.

Rallying, but not seeing the volume yet. Guess we've got all day.

WTI crude probing fresh lows as expected. NG slightly lower.

No safe haven bid for gold, only slightly higher. Silver and copper down.

S&P Outlook:
Yesterday bounced to a nice Fib area -- just short of the 38% -- which is weak. For it to sell off hard afterward targets the 1960-1970 area, but also brings a 1:1 Fib extension target at the 1935 area that could ruffle some feathers.

Failure to reach the full extension, coupled with persistent divergence on the daily Advance/Decline line could bring a large upside reversal.

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