Sunday Night Futures Action

Futures are getting clocked tonight with Dow futures down 100 points and Russell futures down 9.5 points. Japan is shitting the pagoda (-483 points), while the yen is blowing higher. Crude is down again and gold is flat. The ability of the yen to hold these levels is very important. It is at the 61.8% level of the most recent high to low move. Blowing past this level sets in motion more carry trade selling which will be negative for the markets. For me, it's all about the carry trade - a failure of the yen to strengthen as we go through the evening means the markets continue on their slide. Crude showed us on Friday that its pullback didn't mean anything. Gold the same - it was flat on Friday and nothing from the markets. So, we need a 1-2-3 punch that has to include the Yen. Otherwise, we move to the daily 200 ema rather quickly (13150 ish level for Monday). Look for the downside to stall a bit at the 13365 level for $INDU, which is the bottom of the weekly uptrend line. However, the stall will not be for long without the Yen cooperating.