I don’t like the participation readings this morning – plus NYSE A/D ratio is near bullish territory. One chart you may want to watch is this one:
The Friday slump served to completely reverse the medium term overbought condition on the AUD/JPY. We are now potentially at the brink of a ramp up on the FX side, which most likely would serve to give equities a boost as well. As a matter of fact, while I’m typing this ES futures are already attempting to breach above VWAP after having tested it twice before in the morning.