The market’s are showing little signs of a bounce today as traders fear a technical top has finally been put in place in all of the major US equity indexes. For most, they have been calling for a top for 25% or so, but they now finally have technical confirmation after yesterday’s key reversal.
The dollar has been a big beneficiary of equity weakness and weakness in the commodities markers. Oil is down below $66.00, Gold is consolidating below $1000 and EUR/USD is chipping away at central bank bids in the 1.4670 area. 1.4665 support is holding for the moment. More lies down at 1.4605. Solid bids are rumored toward the 1.4600 and at least $500 mln in EUR/USD puts are struck there, expiring on Wednesday.
