The US markets reopened after an extended holiday weekend Tuesday, and risk aversion seemed to immediately catch with the Dow presenting a key break and the VIX soaring
The global capital markets were showing an unusual amount of volatility before an extended holiday weekend (in the US), but the technical picture was less than convincing
US consumer inflation was growing at a faster pace than economists expected in January, but the resultant boost in Fed rate expectations didn’t trigger a clear Dow tumble
I believe the most comprehensive ‘risk’ measure is an evaluation across otherwise unrelated assets, but the Nasdaq 100 – Dow ratio offers its own unique perspective
Today’s trade has been a marked downshift in activity - and certainly direction - but the technical support in the vicinity likely has less to do with the shift than broader liquidity conditions