Bear Flag or bottom? And, the Japanese Yen Carry Trade...

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The debate among traders is if this is a real bear flag that's forming and there's another leg down for the indices? Or, if the bottom, had be set by the lows on Monday.

I believe that the lows were established on Monday and the indices are consolidating and will move upward soon. This consolidation period also allows the moving averages to catch up after the fast decline we had experienced.If the selloff is caused by Japanese Yen carry trade then it is a one-time event without much lasting effect. As I mentioned before - most of the Macro trends point to a higher year end - consumption, jobs, liquidity.