few thoughts about recent market situation:
from last few days there is significant breakdown in correlation between DX and US stock indexes (mainly Sp500) ,also dollar's breaking huge to the dowside so i see this as a change in main market flow . Bonds are drifting above weekly open but without direction.
so what next for stock markets and dollar? i have no clue
i will closely watch on Monday what wiil happen first:
- SP500 will catch a bid and will use the situation of weak dollar to rise .
- or DX will catch a little bid and Sp500 will continue further down move.
VIX also in strange situation because it ended week lower the same as Sp500 but almost around weekly open..