• The risk appetite run continues but benchmarks like the S&P 500 show it is hollowed of conviction
• Congestion setups and pairs with an aligned bias like EURUSD present the more appropriate setups
The S&P 500 is within reach of a record high, and yet market sentiment lacks all of the bullish conviction that would normally accompany such an accomplishment. Volume joined volatility and collapsed as the symbolic benchmarks mark their progress. Between a lack of conviction in the prevailing trend and a refusal to ignite a cleansing fire of risk aversion, trading conditions are distinctly shaped. Shorter-term congestion and range trades are the higher probability setups under these conditions. Pairs like AUDUSD and NZDUSD exploit this short-term approach. Meanwhile there are pairs that carry unique fundamental and technical biases that can project through medium-term boundaries like EURUSD at its 200-day moving average and and the Yen crosses in varying stages of reversal. We look at the trading landscape in today's Trading Video.
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