Does the S&P 500's Late Tumble Change the Dollar's Fate?
With sentiment trends steady for much of this past week and 'Taper' fears fading after the Bernanke shock, the USDollar look ready to tumble...that was until the S&P 500 took a dive Friday evening. A provocative break of congestion and threat to a long-standing trend at the close of the day, week and month is a serious jolt for the markets. Theories abound about the source of this move, but the the spark is irrelevant if the fuse has been lit on deeper concerns behind the steady build in capital market's without the requisite fundamentals. So, we face a new trading week that can usher in a deep risk aversion drive or find a quick stabilization that undermines an overbought dollar. We discuss what to look for and the trade setups on both sides in the weekend video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.