As I have been referring in the last few days as being probable, the volatility continued yesterday to be quite high in the North American indices, not only in the extension of the movements but also in their unpredictability. That was the case of the last 15 minutes of the session on Wednesday that eased the losses on the S&P500 to half the maximum devaluation of the day, there were about 100 points that the index recovered in that short time pushing it very close to the opening value. However, despite the apparent last-minute optimism, it should be noted that the movement had more contours of decisions to close short positions, plus some short squeeze, than a scenario of sustained recovery of feeling, not least because, as I have already indicated this phase of instability is expected to last a few more weeks until medium-long technical indicators stabilize.
In the foreign exchange market, the US dollar was the king by gaining 2.1% against a basket of other major currencies, sending the Euro to an aggressive devaluation of -1.5%, which left the single currency at $ 1.083, still much better than the earthquake that occurred in the English Pound, which closed down -4.1% reaching a new historic low, after the seventh consecutive day in the red. Refugee assets were no longer of any use with the Yen dropping -0.7% to 108.43 and Gold losing another -2.2% closing the day at $ 1.494 per ounce.
Photo by 金 运.
Today is the day remains volatile with absolute uncertainty about market sentiment for the next 30 minutes, with bulls already trying to assuage the feeling but the Bears on the prowl.
