Talking Points:
• Perched at the threshold of a meaningful technical break, the S&P 500 opted for consolidation
• Extending or reversing underlying trends will be difficult as we head into holiday trading conditions
• We should identify opportunities for the major market shifts as well as those for moderation (range)
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Many capital market benchmarks and key currency pairs are coming up on key technical levels. Given the level of volatility we've seen in the financial system these past months and with the NFPs countdown ticking away to Friday's release, there is a strong case for those awaiting the decisive break and trend development - whether extending exceptional moves or reversing them. However, we are also heading into market conditions warped by the holiday liquidity drain. On Friday - US jobs day - the US, UK, Eurozone, Canadian, Australian and Hong Kong markets among others will be offline in observation of the Good Friday holiday. Are major breakouts and trend developments probable given these circumstances? What does that mean for the S&P 500, AUDUSD, GBPUSD and others so close to technical boundaries. We weigh the argument for holding key levels against breaking them and find pairs better suited for the different scenarios in today's Trading Video.
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