Trading Video: Gauging the Dominant Dollar, Yen and S&P 500 Trends

Talking Points:

• A rebound for the S&P 500 and retreat for volatility has investors questioning trend

• The short fuse on volatility and massive fundamental discrepancy to market value remain

• Until 'risk' retakes he reins, concerns over Fed QE, Chinese GDP and UK GDP will prevail

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The bleeding was staunched before the week closed, but financial sentiment is still in a dangerously fragile state. Abrupt moves in the market has likely set the markets on pace for a permanently elevated state of volatility. That means investors will remain on edge so long as structural imbalances - economic forecasts, exposure, leverage, etc - are reconciled to prevailing market levels. Of course, we won't resolve these big-picture considerations in a day, week or perhaps even a month. We look at important fundamental cues for risk benchmarks like the S&P 500, volatility indexes, the US Dollar, yen crosses and others as well as interim drivers in the weekend Trading Video.

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