Trading Video: Doubt for S&P 500 Record Highs, Trades for EURUSD and GBPUSD
• The 'risk on' sentiment embodied by the S&P 500 both ballooned and drew deeper skepticism this past week
• Participation and activity levels further collapsed before the a long US and UK holiday weekend
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A record high close for the torchbearer of investor sentiment - the S&P 500 - this past week comes the immediate caveat that conviction is virtually nonexistent. On the one hand, we have a persistent and mature trend. On the other, there is the constant derision of doubt that prevents the move from gaining momentum. The risk-positive trades in equities, Yen crosses, and carry trades are thereby ironically bridled until risk aversion can deflate some of the excess and provide bargains. Before we return to fundamentally-undervalued investing or the speculative trading of a rapid risk reversal, we can source our trade opportunities for current conditions. We look at the overview of the market and its different setups in the weekend Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.