Risk Off Continues

Yen, Nat Gas looking interesting

Risk continues to be sold off here as the equity markets seem to have a case of profit taking going on. We don’t think its new new real sellers just yet, we suspect it will take a further probe below 15000 in the Nasdaq and 4450 in the SP500 to get the shorts to start piling in a again. As far as the Nasdaq let’s take a look at the charts. The Nasdaq futures have put in a decent top thus far and the Vwaps haven’t provided much support although we suspect the 50p Vwap may have a little bit to say here. This longer term up trend is still intact, however a trade below 15000 would put added pressure on the complex:

When we look at the fib retracements the 14512 area is the 0.382 so we are some 700 points or so away:

As far as the SP500 monthly the monthly candle thus far engulfing the July move:

We also wanted to take a look at the Yen, its getting close to BOJ intervention areas again: