Yesterday was an extraordinary day in the financial markets. Both the S&P 500 and NASDAQ 100 reached their largest short-term lows, which analysts pointed out. These levels are continuing to be watched as key inflection points for bullish investors. Traders are beginning to sense a New Normal pattern settling into the currency markets. Traders are particularly focusing on the USD/JPY and USD/CAD pairs for new shorts.
The coach pointed out that the S&P 500 bottomed out yesterday in what they were calling an important level for the market’s overall direction. This low is the key bull/bear line in this upwardly bullish scenario that traders should be eyeing closely. It might be a signal of an impending trend reversal or of the current trend’s continuation. The above-mentioned analysis indicates that so long as the index remains above this level, we might expect a bullish outlook. If it falls beneath, it can be a sign of negative market sentiment.
As evidenced by yesterday’s low in the NASDAQ 100, these levels are still very important technically. This uptick further cements their outsized influence on all three major U.S. indices. The coach stressed that these lows are more than just statistics. They mark important battlegrounds that could reshape the future of trading in ways big and small. Investors would be well served to keep an eye on these levels as the markets digest new economic data and events that we know are coming.
In the currency markets, a very clear three-drive pattern has formed in USD/JPY. This pattern often signals a reversal, and smart traders will read the pattern for further entries. As the coach pointed out, formations like these almost always precede major moves, which makes them a must-know for anyone trading forex.
Set against that backdrop has been USD/CAD, flagged as one that could provide a better short opportunity. Confirmation of a potential downward move according to the veteran coach, the price action currently suggests at least a tentative move in that direction. This confluence creates a tempting opportunity for traders looking to profit off volatility.