Talking Points:
• Volatility continues to run hot, but the markets are increasingly struggling for direction
• US NFPs data Friday can help decide short-term trend, but only specific outcomes will secure momentum
• Beyond the short-term, the costs and pain of monetary policy are showing through; beware its fallout
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The S&P 500 (a weathervane for 'risk trends') is leaning on immediate resistance...but on a mature and fundamentally questionable bull trend. Meanwhile, USDollar is pressuring the floor of a clear rising trend channel after a seven-month consecutive climb...though its fundamental bearings remain heavily supportive of further progress into the future. We need to consider the medium to long-term fundamental potential behind the markets as we drawn to the exciting short-term technical setups ahead of key event risk: the United States' January employment data. The potential is clear in the charts, but follow through may not come readily in those scenarios that trigger the clean technical patterns. We run down the market's positioning ahead of NFPs as well as the growing distortions from extraordinary monetary policy in today's Trading Video.
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