S&P 500 turned up, opening with a bullish gap, but that wasn‘t any surprise for clients. What is a show of short-term resilience, is no steep upswing in yields complemented by decline in stocks, upon BoJ yield curve control adjustment. Also the USDJPY move if yen‘s favor was completely erased, indicating that rumors of abandoning yield curve control (the up to 1% band) were premature, as Mark Twain would say.

Meanwhile, stock positioning for tomorrow‘s FOMC continues, and this meek rally doesn‘t inspire general confidence for tomorrow – full details below in the chart section consisting of both daily and intraday perspectives.

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Also, Russell 2000 isn‘t really rebounding – how can there be a significant upleg starting with smallcaps not participating?

Gold, Silver and Miners

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Silver upswing doesn‘t mean all clear for precious metals – I look for the current correction (Monday was its start) to continue for a while longer as the long end of the curve shifts back to rising towards and above 5% – the real economy isn‘t yet showing enough cracks to justify calling for end of goldilocks right now.

Copper made its fine move to $3.68 as I called for Sunday, and will now consolidate in the low to mid $3.60s again.

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