The collision of global markets and social mood

Monday, September 12, 2016

Monday -- Back On It

S&P E-mini Futures:
Bouncing from worst overnight levels.

Spooky things going on in credit since the BoJ announced just days ago that they wanted to *manually* steepen the Japanese yield curve, a comment which seems to have made traders wince around the globe.

Asian and European equity markets have continued to wince.

And keep an eye on IG CDX -- the investment grade credit default swap index. As noted on Twitter by @damonsharkey IG CDX "blew out 600bps on Friday, more than twice the move in equities."

Elsewhere, amid several power outages and other issues, I was able to finally post The Socionomic Implications Of September Vogue: 2016. It would've been a lot cooler if it could have been posted just a day earlier.

But take a close look at Friday's market action. That's what happens when social mood gets a little too fearless. 44 trading days were taken back *manually* in just six and a half hours.

JPY may be getting ready to give the BoJ a hard time. It looks like it's been forming a bearish falling wedge since its June lows.

These look better than peripheral Euro zone and Japanese JGBs. But the concern is not in the US at the moment. It's with countries that need US dollars to conduct global trade.

WTI crude has spent the past month and a half creating some sort of triangle, however its last leg down has been very deep. It needs to hold current levels down to around 44.

NG still looks like it's trying to finish a larger impulse from its March lows.

Gold's action is looking increasingly like it may have put in an A of an ABC from its December lows. Ditto silver, platinum, and palladium. The canary could be copper.

S&P Outlook:
Here's where I'm at in brief.

2100 is key. If it doesn't hold, 1991.68 could quickly come into focus.

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