Turmoil in Emerging Markets hit investor confidence in January and, after a stellar February, the crisis in the Ukraine could lead to profit taking this month. Indeed, volatility spiked to a similar level and the S&P came off its all-time-high on Friday as fears started to set in.
The EUR/USD pair rose during the session on Tuesday, but failed at the 1.38 resistance area in order to turn things back around and form a shooting star.
As we begin the week on increase turmoil between the Ukraine and Russia(RSX, quote) energy traders are seeing the highest crude oil prices since September of last year as producers are fear political driven supply disruption.
Has India (INDY, quote) begun to turn? India’s Sensex and Nifty moved higher for the past 4 sessions despite a shorten trading week on account of Mahashivratri (Thurday).
Gold’s recent bullish momentum appears to be holding firm for the time being, and indeed February has been a positive month with only minor pullbacks and reversals denting the move higher.
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One of the best barometer’s of market sentiment is the NQ (e-mini future for the NASDAQ), and whilst many analysts were forecasting market meltdown the NQ was quietly reversing and clearly signalling a short term reversal. The bears, once again, have been sent smartly back to their caves!
As I have written many times before it has been a torrid time for gold bugs, who have seen the precious metal collapse from the dizzy heights of almost $2000 per ounce to plumb the lows of $1200 per ounce.
Looks like the markets just about managed to avoid a mauling by the bears, who have now temporarily retreated to lick their wounds!
The first FOMC meeting this week is an historic one for many reasons. First it is the last time Ben Bernanke will chair the meeting. Second, for the first time in the FED’s history the Chair will be held by a woman, and third with several new members the voting pattern will be scrutinised very closely by the markets.
