Yen and T-Bill

Two keys to the current market situation are the Yen and short-term Treasury bonds. The yen is a proxy for the carry trade (borrowing in another currency and lending/investing in the US), and the T-bill is a proxy for the short-term part of the market. If money is still concerned about volatility, then the T-bill yield will drop. The converse is also true.

Yen

Daily Chart



The yen spiked higher then sold-off. The post-spike sell-off is a standard move in the markets.

Here's the weekly chart.



In the circled area note the following.

1.) Prices broke above long-term resistance.

2.) Prices fell back to long-term resistance.

3.) Prices rose from long-term resistance a second time.

Because the carry-trade is so important to finance right now a continued move above the resistance line is very important to watch.

T-Bill



T-Bill yields have retreated from their highs at the start of the credit market problems. While they haven't returned to the previous levels, pressure is easing in this part of the credit market for now.