Forget Jobs, Here Is The Chart That Holds All The Keys To The Rally

S&P 500, Video

This morning, the S&P 500 Index e-mini futures (ES-U3) are trading lower by 1.50 points to 1698.75 per contract. Earlier, the Bureau of Labor Statistics reported that the economy added 162,000 non-farm payrolls for July. Economists were expecting 182,000 new jobs, so this number was a miss. Will the stock market moving institutions care about the job number? The answer is no, but they will care about the USD/JPY chart. You see, yesterday the USD/JPY surged higher and today it is plunging after the job number. Remember, a weak USD/JPY chart is a huge negative for the leveraged institutional money that has been moving the stock market higher. Traders that do not have a USD/JPY chart can follow the CurrencyShares Japanese Yen Trust (NYSEARCA:FXY), please understand that the FXY will trade inversely to the USD/JPY chart. The bottom line, currencies make the stock world go around.

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