Forex: Yen Cross, S&P 500 Tumble Set Off Market Collapse Fears
• Risk-sensitive benchmarks tumbled to open the week leading traders to fear of a bigger sentiment shift
• Another round of critical support levels stand just below the week's lows
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The trading week opened to heavy selling in equities, high yield and yen crosses. A move of this breadth and severity gives the impression that a bigger risk aversion event may be at hand. And yet, sharp declines over the past few years have almost exclusively represented points of exhaustion to short-lived corrections. So are we looking at another pullback that bulls will soon draw opportunistic bulls back in on the bid or is the scope of this sentiment-related move indicative of a more permanent reversal in confidence and a years-long bull wave? We look at the fundamental and technical developments behind risk trends in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.