In a funk

15.18 gmt

The markets today are very weird. Correlations are not holding up. The DXY is stronger while USDJPY is falling. There are too many candles on many pairs with long tails on both sides. This damages the technical picture and we need a few more sessions for the picture to become clearer. Only the AUD (and GBP to a degree) is still behaving more or less as expected. The Euro and the Yen and the dollar index just don’t add up! I guess this is a sign of panic in the markets spreading from the stock market where the SP500 has broken a key support. That chart looks ugly.

I’ll leave things as they are and see how the day ends.

p.s. Adding to the sense of confusion – gold is still holding up while 10 yr treasury yields are at their recent highs! Things don’t add up.

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