Forex Strategy Video: Has the Holiday Set a USDollar, S&P 500 Reversal?
• The US holiday has curbed volatility and taken the steam out of consistent - but tepid - trends
• After a remarkable 8-day rally into record high resistance and weak fundamentals, will the S&P 500 turn?
Download the Consecutive Bar Indicatorused in today's video for free and use it to measure the historical significance and over-extended level of the markets.
With a major financial center offline, we would expect US market holidays to curb volatility and trend development. But, can these breaks also foster reversals from the likes of the S&P 500 and dollar? Alone, a disruption is the transmission of standard risk trends may not provide a strong reversal cue. Yet, what if this break came after an 8-day rally? Perhaps after a fundamentally weak trend? Or maybe it coincides with a particularly prominent technical level? For the S&P 500, we have all three, and broader market trends carry similar circumstances. We discuss the impact a market holiday can have on the markets 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.