01/28/2016 Live Update

[hunterman]

Good luck dell,got to stay w your process.....with that said, I find when my cycle analysis isn't in tune I usually try to observe n sit sidelines until back on track. Glta.

[DellGriffith]

SPY went vertical for a few minutes tonite on news that the Bank of Japan is mulling negative interest rates:

http://www.reuters.com/article/japan-ec ... ST9N13S058

Markets | Thu Jan 28, 2016 10:31pm EST Related: MARKETS
BOJ discussing introducing negative interest rate policy - Nikkei

http://uk.reuters.com/article/global-fo ... KT9N0VZ05F

Markets | Fri Jan 29, 2016 3:41am GMT
Dollar/yen spikes, Nikkei turns positive on BOJ negative rate report
TOKYO

Jan 29 The dollar spiked 0.5 percent higher on Friday after the Nikkei business daily reported that the Bank of Japan discussed negative interest rates at its policy meeting.

The dollar rose to as high as 119.395 yen from around 118.60 yen. The Nikkei stock average rose more than one percent to 17,210.83. (Reporting by Hideyuki Sano; Editing by Jacqueline Wong)

http://www.cnbc.com/2016/01/28/bank-of- ... uters.html

Bank of Japan adopts negative interest rate policy: Reuters
CNBC.com staff | @CNBC
11 Mins Ago

The Bank of Japan adopted negative interest rates for the first time at the end of its two-day policy review on Friday, buckling under pressure to ease concerns about the health of the world's third-largest economy.

In a move that was signaled by the Nikkei business daily minutes ahead of the decision, the BOJ said it will apply a rate of negative 0.1 percent to excess reserves that financial institutional place at the bank and introduce a three-tier system on rates .

The news saw the benchmark Nikkei shoot up 3 percent, the yen slide 2 percent against the greenback and U.S. stock futures rally 1 percent.

No changes were made to the bank's government bond purchases or exchange-traded funds (ETFs).

This is a breaking news story. Please check back for more detail.

[daytradingES]

7:39 AM 1/29/2016

O/n action looks to give a choppy day

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OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.84%) are up +0.76% and European stocks are up +0.78% as global stock and bond markets rallied after the BOJ unexpectedly adopted a negative interest rate. Also, Microsoft is up over 3% in pre-market trading after it reported better-than-expected earnings results after the close of trade yesterday, which gave technology stocks a lift. The BOJ's action to adopt a negative interest rate sent global bond yield tumbling with the 10-year Japanese bond yield down to a record low .090%, the German 10-year bund yield down to a 9-month low 0.334% and the U.S. T-note yield down to a 3-1/2 month low of 1.92%. Asian stocks settled higher: Japan +2.80%, Hong Kong +2.54%, China +3.09%, Taiwan +2.22%, Australia +0.59%, Singapore +2.60%, South Korea +0.25%, India +1.64%.

The dollar index (DXY00 +0.59%) is up +0.56%. EUR/USD (^EURUSD) is down -0.16%. USD/JPY (^USDJPY) is up +1.75% at a 5-week high as the BOJ's action to adopt a negative interest rate undercut the yen.

Mar T-note prices (ZNH16 +0.39%) are up +19 ticks at a contract high.

The BOJ unexpectedly voted 5-4 to put an interest rate of -0.1% on reserves held at the BOJ worth 10 trillion yen to 30 trillion yen initially and will apply only to new reserves that financial institutions deposit at the BOJ. BOJ Governor Kuroda said the BOJ "won't hesitate" to add further monetary stimulus if needed and has scope to make deeper cuts to the negative rate or to increase its asset purchases.

Japan Dec industrial production fell -1.4% m/m, weaker than expectations of -0.3% m/m and the biggest decline in 7 months.

Japan Dec overall household spending fell -4.4% y/y, weaker than expectations of -2.5% y/y and the biggest decline in 9 months.

The Eurozone Jan CPI estimate rose +0.4% y/y, right on expectations. Jan core CPI rose +1.0% y/y, higher than expectations of +0.9% y/y.
U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Q4 GDP expected +0.8% (q/q annualized), Q3 +2.0%) and Q4 personal consumption (expected +1.8%, Q3 +3.0%), (2) Q4 employment cost index (expected +0.6%, Q3 +0.6%), (3) Jan Milwaukee ISM (expected +1.47 to 50.00, Dec +3.19 to 48.53), (4) Jan Chicago PMI (expected +2.4 to 45.3, Dec -5.8 to 42.9), (5) University of Michigan final-Jan U.S. consumer sentiment index (expected -0.3 to 93.0, prelim-Jan +0.7 to 93.3), (6) San Francisco Fed President John Williams's speech at the Commonwealth Club in San Francisco.

There are 18 of the S&P 500 companies that report earnings today with notable reports including: MasterCard (consensus $0.70), American Airlines (1.97), Honeywell (1.58), Chevron (0.47), Phillips 66 (1.26),

U.S. IPO's scheduled to price today: Shimmick Construction (SCCI).

Equity conferences during the remainder of this week: none.

------------------TOKYO (Reuters) - The Bank of Japan unexpectedly cut a benchmark interest rate below zero on Friday, stunning investors with another bold move to stimulate the economy as volatile markets and slowing global growth threaten its efforts to overcome deflation.

Global equities jumped, the yen tumbled and sovereign bonds rallied after the BOJ said it would charge for a portion of bank reserves parked with the institution, an aggressive policy pioneered by the European Central Bank (ECB).

"What's important is to show people that the BOJ is strongly committed to achieving 2 percent inflation and that it will do whatever it takes to achieve it," BOJ Governor Haruhiko Kuroda told a news conference after the decision.

In adopting negative interest rates Japan is reaching for a new weapon in its long battle against deflation, which since the 1990s have discouraged consumers from buying big because they expect prices to fall further. Deflation is seen as the root of two decades of economic malaise.

[uempel]

This is a weekly chart and I don't know if the ellipses are precise enough. But should I have drawn them correctly, they promise a great move next week. Could be up or down, as these signals don't indicate a direction.