We’re looking for confirmation of follow through in the equities to the upside. I’ll start looking at the Aussie and the Canada for that Risk on feeling. The numbers I am keying off of are 107.10 ish in the AUD/USD ( above 105.80 ish futures) and Canada closing below 96.60 USD/CAD ( app 103.30 ish futures). These currency closes would lead me to expect another swing up in the Aussie and Canada. The Aussie is the main focus here for it’s often the precursor to stock index moves. The Aussie closing over this level should lead to another 80 pips for a start. We just rallied 160 points from yesterday’s low, which was the trade I alluded to in yesterday’s A.M. Look. Closing above these levels should lead to upside follow through in the Stock indices into tomorrow. A rejection of the levels and the opposite should occur. If the Aussie closes right on it wait, we’ve had big moves today, the Bonds and stock indices are over running their short term daily matrix levels into the 2 P.M. Bond & currency futures closes in Chicago.

What to do if we close above? (These are 4 P.M. NEW YORK closing levels.)

First: close out all remaining short index positions, whether they are in the ETF’s or the futures.

Second: Buy some Aussie…

Cash or futures traders have the option of waiting for the next time frame, which is the Asian opening, to confirm follow through and do the trade. We’ve just had a big rally in the indices, the Aussie and Canada,so if given the option, I would wait for the Asian session to confirm.