Much better than expected US new homes sales data on Monday, the first rise in the Case-Shiller index in 3 years and a modest rise in the Richmond Fed index… All that, and risk is coming off.
Oil is down 2%, share prices are 0.6% lower and gold has slumped back to the $942 area. As we commented yesterday, when the market cannot extend a rally on news that is supportive of the rally, that’s a sign that we’re getting set for a correction, if not a trend change.
1.4215/20 is now my pivot-point (ain’t it always?). As long as we stay below that level, I look for a test of the 1.4120 area. A break there puts the trendline at 1.4072 back in focus.
