SPX futures are marginally higher, but appear not to have broken above the trendline. The futures have not broken above yesterday’s high, so there is one technically bearish sign.

ZeroHedge writes, “S&P futures rose further into record territory, European shares rose to within striking distance of their highest levels in more than a year while bonds fell and the dollar rose as investors cheered a surge in Chinese trade data amid hopes of "phenomenal" tax cuts by Donald Trump, all of which have rekindled the Trumpflation trade.”

USD futures went higher overnight, nearly reaching its 50-day Moving Average at 101.126.

ZeroHedge comments, “The dollar has surged in the last 24 hours (following President Trump's tax-reform comments) to its strongest against the yen in 10 days ahead of today's meeting of US and Japanese leaders.

The dollar has fallen steadily against the euro and yen since mid-December as Trump focused on protectionist trade policies, ran into opposition to some of his executive orders, and appeared to step away from the United States' long-held strong-dollar policy.

But the new president spoke out on stimulus measures on Thursday, promising a "phenomenal" tax plan within a few weeks in a White House meeting with airline executives... and the dollar shot higher.”

The Yen carry came alive again as USD/JPY rose to a retracement high of 113.85.

TNX also retraced toward its 50-day Moving Average at 24.40. The smaller Head & Shoulders formation on the right has a probable target of 21.45. I will adjust it on the chart later today.

Regards,

Tony

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