Squawk Morning Briefing: Decision Forthcoming

Overnight the Japanese government confirmed that they had been intervening in foreign exchange markets to weaken the Yen which had recently strengthened against the U.S. Dollar.  While the Euro has the highest weighting in the U.S. Dollar Index, the Yen is in the mix, and however you weight it, the Japanese government choosing to buy up Dollars will drive up the value of the greenback and create demand from speculators looking to step in front of continued government-sponsored purchases. The move was great for Japanese equities seeing companies with strong rallies for companies with export exposure.  However, it seems that the strong dollar and weaker shares on European exchanges has continued to weigh on U.S. equity futures overnight.

Equity prices went right to our targets again on Tuesday, but failed to confirm a turn which leaves us in the same situation we’ve been in for awhile in many markets: an up move may have exhausted but a turn is unconfirmed.  In equities it is looking more plausible that we might see this.  The Euro looks like it could still see another high and bonds are doing their best to confuse.  Much or the broader context from yesterday’s update still applies and the confirmation we’re looking for is identical so you should refer to our prior milestones for confirmation as we’ve focused on integrating new information from Tuesday’s trading into this update.

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Elliott Squawk delivers thorough market preparation every morning in time to take action during the trading day. By combining up-to-the-minute futures activity with traditional end-of-day analysis from cash indices, you receive analysis based on the latest conditions as the trading day sets to open. Each issue of Elliott Squawk goes beyond traditional Elliott Wave analysis because we recognize that trading Elliott Waves is much more than just looking at the most likely current count. Squawk will prepare traders to assess the market action as it unfolds by answering questions that any Elliott Wave trader should consider:

• What price levels and wave motions would confirm an expected move?
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