TOKYO, March 5 (Reuters) - Tokyo stocks are expected to book heavy losses on Monday, with the Nikkei average falling below 17,000 for the first time in nearly two months, after the recent sell-off continued in New York and due to the stronger yen. Nikkei futures pointed to a steep decline in the market. Contracts expiring in March <2NKc1> finished at 16,865 in Chicago, down 295 points from the close in Osaka <JNIc1>. "Today is going to hurt," said Shinji Igarashi, equity manager at the sales department of Chuo Securities. "There really aren't any reasons to buy at all ... exporters and high-tech stocks are likely to come under pressure because of the stronger yen." Reuters Pictures Photo Editors Choice: Best pictures from the last 24 hours. View Slideshow The yen <JPY=> hit a three-month high against the dollar on Monday morning in Tokyo. A stronger yen is a negative for exporters as it eats into profits when earnings from abroad are brought home. The Nikkei <.N225> is likely to move between 17,250 and 16,750 on Monday, market sources said. A fall below 17,000 would be the first since Jan. 12. The benchmark lost 1.35 percent on Friday, to 17,217.93, erasing its gains for the year and booking its worst week in eight months. U.S. stocks continued their slide on Friday, booking their worst week in more than four years. The Nasdaq Composite Index <.IXIC> lost 1.51 percent.
Minor 50 point bounce after a 400 + gap down looks like there may be damage in Eurex and early morning Spooz. My feeling is that Ni225 needs to close gap to get bullish over here in US.
Its clear jpy is 10x more important here than Shanghai. Correlation is nearly pure between the two selloffs. Wonder how far this will go. S&P correlation to usdjpy.
yeah looks like we are going much lower across the board. to test the averages, we are not done in the usa yet.
If it continues with any vengeance, technicals and charts don't matter. this is a size game. if the carry traders have tons more size to unload than the residual buyers, you know who wins. when this stops, this will be the US equities buying opportunity from heaven, considering fundamentals are good.
if teh world crashes of course it dont matter but i dont think we are going to visit valhalla, we will test emas @1350-1325 on spx, maybe some below but not much.