Sharp Market Correction: Is it time for everything to rally?
This week the USD JPY confirmed last week’s closing price reversal bottom with a follow-through rally to the upside. The primary catalyst behind the Dollar/Yen rally was the interest rate differential. Treasury Bond yields rose this past week while Japanese rates held steady. The increased spread helped draw investors into the Dollar.
December Treasury Bonds Post Daily Reversal Bottom
After early session pressure, the December Treasury Bonds posted a daily closing price reversal bottom which may be an indication that it has run out of sellers.
Thursday’s action suggests that traders may have begun the process of squaring up short positions ahead of next week’s Federal Open Market Committee meeting.
The USD JPY lost ground during the Asian trading hours Wednesday, driving the market closer to the “intervention bottom” at 82.88.
The primary force driving the U.S. Dollar lower was the Bank of Japan’s quarterly survey of business sentiment which showed a better-than-expected improvement in a key index known as the Tankan survey.
T-Bond Reversal Bottom indicates Possible 2 to 3 day Retracement Rally
Dollar/Yen in Position to Post Weekly Closing Price Reversal Bottom
September S&P Posts Reversal Bottom on Increased Demand for Risk
The September S&P 500 posted a closing price reversal bottom after investors turned up demand for higher risk assets. Oversold conditions and a weak U.S. economy helped to boost equity markets throughout the day after a strong showing in Asia and Europe overnight boosted demand for risk. This bullishness was clearly in the U.S. markets on the opening. Later in the morning the U.S.
U.S, Stocks, Rise, Overnight, after, Reversal, Bottom, Formation
The June E-mini S&P 500 followed through to the upside Tuesday night confirming the daily closing price reversal bottom formed earlier in the day. Based on the current short-term formation, traders should watch for a 2 to 3 day retracement with 1105.75 to 1122.00 the next possible upside target.
June E-mini S&P 500 Fails to Confirm Friday’s Reversal Bottom
The June E-mini S&P 500 is trading lower this morning due to the weakness in the Euro. Traders are once again taking risk off the table as they watch the possible contagion issues sweep across Europe.
Friday’s closing price reversal bottom was not confirmed overnight, leading to speculation that a correction back to at least 1060.00 is possible today.