DailyFX.com -

Talking Points:

• We have seen the first market-wide volatility event in 6 months - and only the fourth in 3 years

• The S&P 500 dropped 2 percent, high-yield assets tumbled and volatility measures surged higher

• Initiating a true change in market bearing requires conviction, and the NFPs can help feed it

Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!

We have seen the first, serious market-wide run on speculative positioning in six months. A drop for global equities, high-yield assets tumble, dollar rally and volatility measure surge marks a critical next step towards a more systemic change in sentiment. We have been here before however. This is the fourth 'shock' to the system since the beginning of 2012. In the previous iterations, the jolt was substantial but short-lived. To tip such a mature trend - even one as steeped in skepticism and fundamental doubt as this one - the market needs to be forced. With an important NFPs and inflation figure due today, perhaps that is possible. We look at burgeoning opportunity and its trade potential in today's Strategy Video.

Sign up for John’s email distribution list, here.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    GBP/USD 100 hr level MA caps upside

  2. Forex News

    What are the Traits of Successful Traders?

  3. Forex News

    No Vote in Referedum Reinforces Greece Line, ECB Raises Haircuts

  4. Forex News

    Commodities: CFTC Commitment of Traders Report - TDS

  5. Forex News

    EUR/USD recovery capped at 1.1090; back to 1.1050

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!