I was looking at the international charts this morning and both the FTSE and the CAC seem more like the S&P than the Dow. The FTSE actually appears to be retesting a breakout in here while the CAC is at the midpoint in a sideways range. No new lows but for the Dow.
Also, keep in mind that we are coming to the end of a hiking cycle by the U.S. Fed. The mantra don't fight the Fed was strong throughout the downtrend of 2000-01 and people got a bit tired of it. I have not really heard it once during the current cycle though the market has clearly been sailing into a headwind the last 9 months. It is still possible that we are at a point in the cycle similar to the 1994 cuts which also spooked markets quite severely. It may be that the marketing is waiting for a Fed bias change more than waiting to see who becomes the President.
Lastly the DXY is has made a straight line down to 85 and I would expect a bounce here.
No comments:
Post a Comment