Moving stop to 1282. We are now starting to hit some oversold levels. I'm going to watch how the next 30 and 60m bars form and probably take the next target (move up target from 1247). Edit: Covered 2nd contract at 1253.75. 2 contracts short remain.
Not this time $ going up due to the rest of the world going into the shit, stocks going down because of slow world growth expectations.
They need to get this back above 60 today or the bears are in control. Even with a good payroll number 60 will be hard to get back through tomorrow.
Another problem that will arise for large US companies. Most of these companies will not have hedged their foreign earnings. Very nice when the euro is going up not so nice when it is going down. Watch for that warning next quarter...
On the currency front. eur/usd is dropping, but usd/jpy is dropping at the same time. That offset the upside bias for US indices.
Jpy increases on any uncertainty, there is neg correlation between the vix and usd/jpy.... Jpy is a carrytrade whenever there is uncertainty or higher risk, carry trades unwind. Euro and GBP are not and the focus is on their economy and rates versus the US at any given time. Edit The moves in the Dollar/US equities/Commodities all make sence if we are going into a world wide slowdown. OIL IS still to high, 70 to 80 is a better reflection of the world economies.