We are staying with our original game plan in the equity indices from yesterday. A close in the Nasd futures ( 2350) or a close in the QQQ above 57.50 and we will initiate new long positions. A word of caution today for all traders! The Russell is trading close to the Oct 07 high of 85770. ( This is the pre-crash high and a level for a possible double top) We need closing confirmation for any new positions.

Currency land…it’s all about the Yen crosses!!! I have a swing count of as much as 115 ish in the June futures ( 87 USD/JPY) however the Yen is running out of downside momentum ( in other words we’ve come a long way baby) and the low 116’s ( 86 USD/JPY) should prove tough in the near term.

Preservation of capitol 101..It does not pay to trade against the crosses, if you miss it you just have to wait for the next ride because there always is one.

I am not changing my directional forecast. We only suggest caution mid-week.