Yesterdays sell off on the Dow could have been an extremity and things could reverse today on Wall Street if the 5o exponential moving average (EMA) and the 23.6% Fibonacci level that coincides with that level is to act as support as can be seen on the chart above.Do take note guys of this very important information.
The real battle between risk appetie and risk aversion is actually being played out between the Dow and the Dollar. The current market environment and the current sentiments that we are seeing now is the result of a weak Dow that is pulling all else down. It is not a strong dollar that is pushing this risk aversion. This particular connection is a result of observations that I have made and by others that the Dollar rally at times happens only after the selloff on the Dow.
Be quick and nimble in these markets guys.
To your trading success.
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