The renewed drive up on equity prices is diverting attention from another heavily participated trade. Shorting the Aussie Dollar has been a popular position since the start of the Open. Some specs have paired the trade against the Euro or the Yen to take the Buck out of the picture. It is difficult to envision these crosses coming off without a rippling effect elsewhere.
US rate products are bouncing somewhat after a 2 day setback. It doesn't take a vivid imagination to see a "Flag" forming in the 10 yr future, Hooper is constructive above the 124.05 level taken after the data and comments this morning. Perhaps, these other movements are in front of the wave and equities will be the ripple.