Sunday, March 27, 2016

Why It's Called "Globalization"


Back in August, -7% of S&P downside originated "off hours", as evidenced by the three downside gaps (black rectangle). In January -5% of S&P downside originated "off hours", via three downside gaps as well...

At the beginning of each down wave, most of the S&P selling was taking place in other time zones...

S&P 500 with large (>20 points) up gaps (black) and down gaps (red):


Bloomberg: "Aussie is seen as a proxy for the Chinese economy..."

Aussie Dollar / JPY



Aussie is also a proxy for the S&P 500...




USD / JPY
I think we all see where I'm going with this...