Forex Market News
Stocks globally took a turn for the worse overnight, as the IMF (why are we still caring about what they say, they haven’t been right in years?) downgrades global outlook. The Yanks are apparently also scared about what might happen during the earnings season as the strong US$ weighs on potential profits. However, the fall just brings us back to the long term trend as shown in the (weekly bar) chart of the S&P500. (attached)
Where it will go from here is unknown of course, however I would argue that the rise is attributable to the free cash from the US Fed. That flow will be turned off this month. Perhaps this is the smart money getting out and that that trend line will break. Time will tell I guess, but I would prefer to be looking for shorting opportunities once QE stops and even more so if and when rates rise in the US.