- US equities are holding on to yesterday’s low as we approach this morning’s open, and this presents a cautious backdrop around stocks as earnings season continues. The big fear factor here is the Fed should the selling continue, as we may not have such a friendly response should stocks pull back given the pace of inflation in the US.
- This bearish theme in stocks is showing as both US Yields and the US Dollar continue to rally. We looked at a series of setups around the US Dollar in yesterday’s webinar entitled, US Dollar Price Action Setups Ahead of ECB, BoJ[1].
- DailyFX Forecasts have been updated for Q2, and are available from the DailyFX Trading Guides page[2]. If you’re looking to improve your trading approach, check out Traits of Successful Traders[3]. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide[4].
Do you want to see how retail traders are currently trading the US Dollar or the Japanese Yen? Check out our IG Client Sentiment Indicator[5].
A Change-of-Pace in the Equity Space
As we approach the US open, the S&P 500[6] is sitting just a few handles off of yesterday’s low. Yesterday’s session was not pretty, with selling starting at the open and running all the way into the early afternoon. A bounce began to show at around 2PM, and by the 4PM close prices had rallied by as much as 20 handles off of the lows; but those gains could not hold, and S&P futures have been on offer since shortly after
