Equities Enjoy Largest Corrective Rally Since Feb 24 on G&-8 Intervention, UN No-Fly Zone

• Yen Falls Most Since October 2008 as Group of Seven Agrees on Intervention  
• Japan Stocks Climb as Central Banks Begin Intervention on Yen; Tepco Jumps  
• G-7 Sells Yen in First Joint Intervention in More Than Decade

The stock market is going into the opening of Friday’s session with a bit of a bull bias. To some degree, for all the hoopla about the ad-hoc G-7 intervention overnight, you would think this action was on par with the 1985 G5 Plaza Accord. (something I will parse out a bit later)

Key Observations for now:

1.      Two Friday’s ago, the SP500 enjoyed a short-covering rally into the bullish NFP report, after which, during the pit session, the SP500 fell -23 points.

2.      The initial low off the March 1 ISM high was 1291, and the Feb 24 low was 1288. The SP500 has returned to the initial lows off the Feb 18 and March 1 highs in response to the overnight intervention. Old lows become resistance is an old market axiom to consider for today’s session

3.      The upper parallel lines on the pitchfork in the point and figure chart are indicating resistance around 1291-ish, if it gets there this morning. Any initial buying on the open would probably encounter a wall of selling pressure in the 1288-1291 zone shortly after the market open.