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This morning, the S&P 500 Index e-mini futures (ES-U3) are trading higher by 2.75 points to 1658.50 per contract. Traders and investors are still trying to digest yesterday’s sharp sell off. Bond yields on the 10-year U.S. Treasury Note seem to be one of the leading catalysts for the stocks market. Are the higher yields telling us that a September taper is coming? Traders should also follow the action in the USD/JPY currency chart. If the USD/JPY continues to decline it could be bullish for gold and silver. Should the USD/JPY currency pair start to rally or trade higher it could cause gold to pullback. Remember, the short yen carry trade has accounted for a lot of the liquidity to keep stocks up and gold down.
