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

    Gold Drops Below 1200 Anew, SPX 500 Threatens 2-Month Uptrend

  2. Forex News

    USD/JPY Technical Analysis: Prices Hit Highest Since 2007

  3. Forex News

    US Dollar Technical Analysis: Recovery Regains Momentum

  4. Forex News

    EUR/USD Technical Analysis: Support at 1.08 in Focus

  5. Forex News

    USD/CHF Technical Analysis: Franc Sinks to Monthly Low

Trading Center