Talking Points:
• Passing through the US holiday liquidity drain, corrections were the order of Wednesday
• The Dollar has eased back towards its former, major resistance; and the S&P 500 found itself stuck
• Markets are expected to fill out moving forward, but is there is enough event risk to stir the waters?
See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot.
A bank holiday in the US this past session, cooled speculative drive and reined in efforts to leverage breakouts, reversals or strong trend development. The result was a market that was rife with corrections and range development. For the Dollar, that would translate into a pullback towards the 12-year former resistance at 12,150 that it just this past Friday clear. The majors would offer similar moves. Meanwhile, the S&P 500 (a stand in for risk) was stuck between its record high and marking a more significant move towards reversal with the 200-day moving average as support. Looking forward, liquidity will fill out, but how will that guide the markets? Key levels are in place and some key event risk is on tap. We look at the market positioning in today's Trading Video.
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