S&P Futures Take Out Support On Massive Volume, Next Stop 1,171, FX Carry Unwind Scramble

Just as the S&P took out recent support levels (if one can find any in a non stop up market), the next support level is 12 points lower. At the same time there is a total carry unwind panic in process, with the JPY surging, and very other pair plunging.

Comments

[Orly]

It is the yen over the dollar until about August, then watch the fireworks as the USD/JPY pair shoots the moon!

Make you rich.

:D

[-1Delta]

i hope this is the top to this retarded mess... was expecting a bigger fall the Euro tho...

[Orly]

I would have thought that the EUR/JPY pair would have tanked much worse than it did.  I would have expected an over 100-pip drop but it looks like it topped out at about -85 or so.

I am closing my short EUR/JPY position today because I don't know what kind of shenanigans will play out over the weekend.  I am keeping my EUR/USD and my USD/JPY shorts open, though.

Next week should be quite interesting indeed.

:D

[Bylinka (not verified)]

Dear Tyler, I remember your post where Goldman Sold SPY @ 1177, am I not mistaken?

[yabs]

yes lets hope this is the top
and we break 666 on the way down
DIE you F*cker

[BlackBeard]

I hope my european vacation will be 40% cheaper by next year...woo!

[economists_do_i...]

TLT has experienced the highest up-vol day since last June/July -- stocks were enduring a correction then as well.  I expect today to be more of a new short term trend than a 1-day dip/fluke.

If so, that will create a great opportunity for TBT in the near future.  :o)