Republic Risk: More Volatility Ahead...

Japan...

Equity Storm Watch Is RED on the S&P 500 and RED on the Russell 2000

Markets are up this morning, looking to claw back Monday's premarket losses due to reassurances from Bank of Japan Deputy Governor Shinichi Uchida, who pledged not to raise rates further while markets are unstable. This is just capitulation at its finest.

This has been enough to help push the S&P and Nasdaq futures up 100 basis points this morning. With markets just 40 basis points away from reversing the dreaded Thursday, Friday, and Monday downtrend by breaking above Monday's premarket sell-off.

Traders will want to wait for a break back above 5350 on the S&P and 449 on the Nasdaq 100 (QQQ) before joining the move.

Leading the move, Technology, Communications, and Consumer Discretionary sectors are seeing a bump as investors begin to dip their toes back into riskier waters. This has pushed the yen down to 147 against the dollar, as there are very few places to stash capital, with the most natural resting place being b…