Tuesday, August 07, 2007

Yen and Stocks: Mirror Images

Above you can see charts from today's action in the Yen and ES futures (click on charts for greater detail). When the Yen could not catch a bid at the 13:35 PM bar (marked with check mark), we started firming in ES. Failure of Yen to make a new high when ES made its marginal new low was a great tell and an instructive illustration of why it helps to keep an eye on correlated markets.