The price fall found support near the 50% retracement (from move up from August 26)
The data today turned the bias from bad news is bad to bad news is good as it leads to more Fed easings.
So the stocks went from down -85 points in the Nasdaq to up 50 points (at the highs). The S&P went from -31.67 points to up 13.64 points at the highs. The Dow went from -335 points to up 54 points at its high.
The current levels have the S&P up 4 points, the NASDAQ index up 26 points and the Dow down 27 points.
Meanwhile yields continued to move lower especially in the shorter end. The 2 year yield is down -9.2 basis points. The 10 year yield is down -5.3 basis points currently.
The run back higher in the stocks, has also reversed the USDJPY. The data initially sent the pair down sharply and toward the 50% retracement of the move up from the August 26 low at the 106.45 level (the low reached 106.477, just above the 50% level).
The prices since rebounded back toward what was earlier support at the 106.91 to 106.954 area (see earlier post here). The high just reached 106.935.
So the new range is set with support at 106.45 and resistance at 106.95. We currently trade at 106.80.