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Japanese Yen completes short term target of 9450 after holding retest of October 1st low and taking out 9263. Overall Yen remains in a downward trend and this was a short term and aggressive reversal. Pullbacks down to 9260 now must act as new support in order to hold lows and an October close above the September highs are needed to reverse overall bearish momentum.
SP500's breach of August 1890 low shows a lack of new buyers after V shape short squeeze through 1970. Reversal below 1890 has turned pressure lower, seen with recent low of 1813 to test major support based off last major lows of 1803 from April. Short term buyers have Wednesday's V reversal to work with and attempt to hold current lows to consolidate and recover above 1864 new resistance to attempt a squeeze through 1882 with new major resistance against 1918. Below 1803 sees next major support down to 1752 based off the year lows of 1732.
The 2 year tight range in the VIX saw a headfake during July 4th as the market broke the bottom of its trendline support. This low into July 4th turned into the bottom as the holiday low volume complacency led to this new low in VIX. As the VIX recovered here, even as the SP500 made new highs in September, VIX was unable to take out the July 4 lows, since more traders were back at work, thus more volume and volatility. The September highs in the SP led to the July 4th lows of the VIX to be retested and successfully holding, to confirm a failed breakout by taking out the 2013 highs and squeezing into 30-35 as first major resistance. VIX is now against major resistance and one should look at old resistance of 20-18 to offer new support going forward.
