Stocks were sharply lower today after Bank of Japan kept its ultra-loose monetary policy unchanged but used slightly more positive language for the economy as a whole, which was expected. However, some market participants had hoped that the bank would lengthen the duration of one-year low-interest loans to banks to address the volatility in the bond markets. Stocks recovered from the steep losses during mid-day supported by strength in US treasury yield but the weak auction later in the afternoon didn't help and Stocks closed near the Session lows. SPY closed at $163.10 leaving a cushion of $4.10 for our trade with three days of trading left for the week.

Tomorrow is going to be the light day again for US economic calendar, we'll have treasury budget data released in the afternoon. Overseas, We'll have Consumer Price Index data out of Germany and Unemployment count from UK. German Constitutional Court should also be ruling on legality of ECB's latest bond buying program tomorrow. Let's see what tomorrow morning brings.
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