US markets are looking very volatile at present despite the raft of somewhat positive data that came out today as global fears continue to drive the market deeper and deeper into the red for the start of 2016. This comes on the back of stronger than expected unemployment claims which came in at 269K (281K exp), certainly this was a positive result for the US economy, but it reflected poorly on the charts with the S&P 500 taking a beating and slipping further. As a result there is further pressure now placed on tomorrows economic data for retail sales, which is expected to be relatively weak compared to previous years. Despite all of this opportunity is still abound in the US market at present as the market drives lower.

The S&P 500 on the charts has formed a double bottom after today's touch on strong support at 1803. The market has since looked to fight back after the recent double bottom and is starting to drift back upwards towards resistance at 1859 at present. The real question is how the market will treat resistance in the current market climate, for me it really is a bearish climate and the market is likely to stay that way for some time until we see some real data make headwinds or central banks turn up the heat on the current economy problems.

On the flip side crude had another hard day as it was pounded even lower by traders. Not even USD weakness could help crude find its way on the charts as it slipped ever lower. Many have started to wonder when the cracks will start to be seen and recently we saw the start of this with BP as it reported a large loss.

Looking back to the charts at WTI we can clearly see that despite today's small hammer forming the market is not letting up the pressure and the bears are still looking very much in control. Support at 26.73 today was ineffective at stopping the market moving lower, and it seems likely that we could see further falls as a result. I am still looking for support at 24.74 when it comes to this fast moving commodity. Certainly it looks unlikely to stop until we see further consolidation in the marketplace.

Lastly, the USDJPY continues to find itself under very strong pressure as markets look for safe havens in times of distress like at present. Certainly this has stoked the likes of Shinzo Abe to try and interject his voice into the market and talk up the possibility of further stimulus. But for now markets are having none of that and it may take the BoJ to actually interject in the markets in an effort to weaken the Yen and return it to normal balance.

Looking for support it can be found easily enough at 109.897 on the charts, and it's unlikely to be easily beaten as the USDJPY has remain elevated for some time. Also the BoJ will be watching these key levels as well. 

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