Equities Sink Closer to True Reversal, Pound Traders Read Election
• Equities took another stumble (China posted its first 2-day drop in 3 months) drawing near to key levels
• Risk aversion is not yet a self-sustained theme, and rate speculation wouldn't span to the Dollar
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Stock markets took yet another step towards the risk aversion move that many speculators have long awaited. A global slip would push China's Shanghai Composite to its first two-day loss in three months, Australia's ASX200 to a major range break and the United States's S&P 500 back into view of its multi-year channel floor. Yet, as impressive as these technical moves and levels are, conviction is still not set into the self-sustaining cycle necessary to form a reversal in years of conviction. In the meantime, scheduled event risk is generating unique developments for certain regions and currencies. The Euro's rally in the face of ongoing Greek negotiations should have traders questioning the permanence of the move. For the Australian Dollar, employment data ahead may prove more definitive than the past RBA decision. And, top event risk is Thursday's UK election. We cover these key market themes in today's Trading Video.
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