Today we are seeing risk markets taking a dive this morning. As we noted in our commentary and newsletter Tuesday and Wednesday, it was time to be cautious. However, we would like to note that the markets are currently hitting some support levels in all the currency pairs we covered in our newsletter.
Let's take a look at the S&P 500 as proxy for risk assets to see where we might be headed.
Looking at this major U.S. index, we can see the inverted head and shoulders pattern as noted above. We can see that today it looks to be bouncing off support. While we have been advising caution all week. As long as top of channel holds as support, we expect this could be the time to buy risk markets. As such, we will be entering trade alerts shortly.