The U.S. dollar is showing renewed forcefulness vs. the Aussie dollar (bottom chart), in addition to we're seeing a pullback of stocks (top chart) dorsum into their 10/28 range, afterwards having broken inwards a higher house that attain yesterday. That leaves us inwards a wide trading attain defined yesteryear the overnight highs today/Thursday highs in addition to the 1040 grade inwards the ES futures from which nosotros launched yesterday's rally/Wednesday lows.
USD forcefulness reflects, inwards part, concerns over the Fed coming together adjacent week alongside signs that around key banks (Australia, Norway) convey begun their dice strategies from depression involvement rates in addition to monetary ease. Any hints of charge per unit of measurement rises on the horizon could touching on the dollar to the upside, which has seen weakness interpret into appetite for commodities in addition to stocks.
Yesterday's sudden rally afterwards recent considerable weakness suggests that nosotros may convey seen an intermediate-term momentum depression pose inwards yesteryear the stock market. If so, I'd hold upwards looking for signs of bottoming--fewer stocks making fresh 20-day lows in addition to fewer stocks trading below their 20-day moving averages on weakness--before seeing a fresh bull leg. It would non surprise me to watch markets merchandise hesitantly in addition to inwards attain fashion every bit nosotros motility closer to adjacent week's Fed announcement.
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