This morning, the S&P 500 Index e-mini futures (ES-U2) futures are trading higher by 1.75 points to 1461.00 per contract. The markets seem to be holding steady despite some geopolitical tensions between China and Japan. China is now threatening to dump Japanese debt, meanwhile, Japan just announced more monetary stimulus. Japan has now been stimulating there economy with easy money since 1989. The United States better pray that they do not have a Japan type deflationary crisis on their hands.
Normally, traders and investors could watch the Japanese ADR's to trade higher from this news out of Japan. Unfortunately, leading Japanese ADR's such as Sony Corp (ADR) (NYSE:SNE), Toyota Motor Corp (NYSE:TM), Canon Inc (ADR) (NYSE:CAJ), and Honda Motor Co Ltd (ADR) (NYSE:HMC) are all somewhat extended and overbought on the charts. Traders will most likely have to wait for a pullback in these stocks before they move higher again.
Below you may find the video.