Forex Strategy Video: Assessing Pullback Versus Reversal for S&P 500, USDJPY
• Magnitude isn't the only thing that separates a correction from a reversal
• Technical, Fundamental and Market Condition factors can help set our probabilities
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From its record high set two weeks ago, the S&P 500 has dropped nearly 6 percent. Is that a true bearish reversal or a mere correction in a dominant bull trend? We have been here before. Previous declines over the past five years have inevitably stalled - some after more significant counter-trend moves - and returned control back over to the steadfast bulls. And yet, trends change. Reversals start out looking like mere corrections. Conviction and magnitude determines the transition. In today's Strategy Video, we discuss the process of gauging corrections versus true reversals using the S&P 500, EURUSD, GBPUSD and USDJPY.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.