Yen Crosses Continue to Tumble, USD Holds, S&P 500 Grows Erratic

Talking Points:

• Risk aversion is intensifying between correlated moves and rising volatility measures across asset classes

• USDJPY continued to lead the Yen crosses lower, but progress should have us consider possible foils to the trend

• Oil rebounds after another production rumor - can that carry equities to a lasting recovery?

See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot.

Risk aversion maintained its clear hold over the markets this past session, but a rise in volatility adds a new facet of concern for the financial system. Large and frequent swings behind equities raise the risk that the hold out benchmark for investor confidence is at serious risk of not just a key breakdown, but perhaps disorderly unwinding. Meanwhile, the late-day rebound from shares that accompanied a bounce from oil on rumors of a production cut bears closer evaluation for its fundamental traction for a recovered optimism. Meanwhile, gold has posted a massive bullish breakout while the Dollar still holds the floor on its long-term bull trend. With so many cracks forming on the market's surface, traders need to be prepared for bigger moves. We discuss the big movers and overview of general market conditions in today's Trading View.

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