Gauging a Potential Bounce

Conditions I'm watching closely today & tomorrow.

First, let me emphasize what we’ve been saying for the last week: USDJPY is the most important FX pair to watch going forward, as it will likely have implications for all asset classes and particularly Equities.

It may be a contrarian view today, but in a few months I suspect we’ll see social media light up with memes…

• “It was all a USDJPY trade all along”

• “We’re all Yen traders now”

• “I think I’m turning Japanese, I really think so” (reference)

Good memes always contain a nugget of truth, and if Volatility picks up into later Q3, expect these and similar memes to take over.

For now though, and as mentioned in this morning’s earlier post, my focus is on gauging the bounce potential in U.S. Stocks. These are the key conditions I’m watching — front and center on my screens as we begin Thursday’s session, and approach the end of another important trading week: