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Talking Points:

• The prevailing S&P 500 and Dollar bull trends were still in place this past session

• Yet, momentum is flagging and technicals look increasingly like the initial stages of breakouts

• Breaking into reversal or continuation though depends on participation - something fading quickly

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Both the US Dollar and S&P 500 bull trends are leveling off. After the light fundamental support and given the shape of technicals, many speculators are tempted to call impending reversals while others see consolidation before a break to continuation. As convincing as the fundamental and technical pictures are, though, it is important to remember a factor that can easily override other influences: participation. Already tepid activity and volume levels in the FX and capital markets will soon crash into the seasonal drain of the US Labor Day holiday period. What will this mix of technicals, fundamentals and market conditions bring for the financial system? Can EURUSD overcome the fog with key event risk and an extended run? We discuss this in today's Trading Video.

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