Forex Trading Video: S&P 500 Tumble Lacking a Risk Cue, Will BoJ Break Yen?
• S&P 500 has opened the week extending Friday's tumble...but support for 'risk off' is uneven and weak
• The BoJ rate decision is Tuesday's most prominent scheduled event risk
• EURUSD is running out of time and room for a fundamental spark to resolve its terminal wedge Market conditions change, and our strategy should reflect those changes.
We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
The S&P 500 picked up where it left off Friday with another 1 percent-plus drop. Normally, we would consider this a cue that risk aversion is gaining traction and may soon encompass the broader market. Yet, if this is an underlying sentiment move, why are so few of the other 'risk' benchmarks confirming the important fundamental drive? The next move for the US equity index and speculative appetite in general require a stronger push and deeper conviction. As we await the outcome of the risk imbalance, the docket will continue to feed interest rate / stimulus speculation. With the BoJ this morning, we have an ongoing conversation that further encompasses the Euro, Pound and Dollar amongst other majors. We discuss this and more in today's Trading Video.
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