News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • USD/JPY extends the rebound from the weekly low (109.11) as the stronger-than-expected US Retail Sales report fuels speculation for an imminent shift in monetary policy. Get your $USDJPY market update from @DavidJSong here:
  • S&P 500 Sinks on Evergrande Risks Ahead of FOMC, Airline Stocks’ Outlook Brightens #trading $SPX $NDX $DJIA $JETS $AAL $DAL $LUV $UAL
  • There was some serious BTD action in that final hour of New York trade. With the FOMC on Wednesday, the freeze usually associated with anticipating a big event could help curb a deeper slump. If risk aversion continues despite the attention, it would concern me.
  • The S&P 500 staged a late-day rally, but still closed down by roughly 1.7% $SPX $SPY $ES
  • Gold posting decent gains for the session, up just shy of 0.5% as risk-assets broadly decline $XAUUSD #Gold
  • USD/CAD spiked to start the week, setting a fresh September high at 1.2986. Get your $USDCAD market update from @JStanleyFX here:
  • RT @YahooFinance: “When you look at what’s going on in the Chinese bond indices, it appears that this is still contained to the real estate…
  • House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer seek a suspension of the debt limit through Dec. 2022 - BBG $USD $DXY
  • Dow now down -2.5%. Worst single-day drop in 11 months
Volume in SPY and Other 'Market' Favorites Hit Multi-Year Lows

Volume in SPY and Other 'Market' Favorites Hit Multi-Year Lows

John Kicklighter, Chief Strategist

Talking Points:

  • The S&P 500 is stalking record highs, but conviction in the push forge new heights has proven difficult to muster
  • Volume for favorite risk-oriented benchmarks SPDR and QQQ equity ETFs hit multi-year, non-holiday lows Monday
  • Fundamentals, market depth and total exposure paint a picture of a market stretched on conviction

Having trouble trading in the FX markets? This may be why.

Enthusiasm for the 'long risk' trade seems to be easing up even though many of the benchmarks for that speculative view continue to press higher. Fresh from the weekend and following Friday's robust US July employment data, volume on some of the most popular long 'market' trades hit exceptional lows to start the week. The SPDR S&P 500 ETF (SPY) and Powershares QQQ Nasdaq ETF (QQQ) saw volume Monday hit their lowest non-holiday levels in more than eight years. That is in contrast to both instruments hitting record highs. While heavy volume isn't necessary to carrying markets, restrained participation is another characteristic in a growing list of factors that speak to complacency and skepticism.

As discussed over the weekend, momentum behind risk-oriented markets has faltered under the weight of already-exceptional exposure to 'risk' and a tangible dimming of the fundamental outlook. In turn, complacency has translated into remarkable activity milestones - the VIX volatility index dropping below 12 while the S&P 500 hits record highs which has aligned to at least temporary reversals in his bull phase. Or the same volatility index sliding for six consecutive weeks, a feat only seen four other times over the past three decades. Volatility and volume (participation) maintain a general, positive correlation. That presents a conundrum if the market remains sidelined by tepid opportunity and does not move in mass unless motivated by panic and deleveraging.

It should be stated that this week's opening move is disappointing when we consider the tail winds of the past few weeks: a fresh wave of stimulus between the bank of Japan and Bank of England as well as the encouraging labor update from the world's largest economy. A quickly depleted optimism with such a hearty fundamental mixture - which in past years may have stoked a trend for weeks if not months - furthers unease. That said, there are few definitive pieces of event risk scheduled for release through the week to offer a lightning rod for sentiment to collapse. That leaves us at the whims of an increasingly temperamental and suspicious consensus market view through the near-term. We discuss these unstable conditions moving forward in today's Strategy Video.

To receive John’s analysis directly via email, please SIGN UP HERE.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.