Japan!

Central banks are back in focus...

Action to Take: Watch the Direxion Daily FTSE China 3X Bull ETF (YINN)

All eyes are on Japan as the BOJ prepares its second rate hike since 2007. They've done a better job telegraphing this move to avoid July's market shock, but seeing inflation stick above 2% and wages jump the most in 33 years tells us price pressures aren't disappearing anytime soon.

With Treasury yields climbing four basis points overnight and momentum already softening, today calls for caution as last-minute stragglers position ahead of this evening's policy decision in Tokyo. It's the eleventh hour, and any Japanese capital still sloshing around in US markets could mean downward pressure on big tech and treasury bills.

Play it safe for one more day despite our Green signal.

On a side note, China took another step to support its markets, ordering state insurers to put 30% of new premiums into local stocks and ordering mutual funds to increase holdings by 10% annually.

While previous stimulus attempts haven't stuck, fo…