USD/JPY, USD/CHF, AUD, SEK flows - trouble in paradise
Nasdaq extends the breakdown after re-test, now down to critical support ahead of larger top development
Spilling over to JPY and CHF vs USD, and extending recent cross action
The Nasdaq election day feints were indeed a breakdown re-test rather than spike clear out, and the near 5% slump today extends the move into the critical 27200~ lows (e-mini).
Below there looks rather more ugly still in terms of top-development in the current timeframe and then the next level down is around the 26000~ prior Q3-Q1 range tops.
Challenging for markets with the bipolar forces of oil and tech/AI through the results but the latter has a lot more potential to inject volatility and risk unwind spillover in the very near-term and the likes of JPY can tend to win out on all counts if oil remains lower, reducing a source of stress, while risk-off action drives its recent renewed haven qualities and builds on recent cross-yen trends. CHF the other main beneficiary in the rejuggled haven league table, with USD now more equivocal and frequently harmed by US-centric tech-risk-off. As suggested, after today's move, the market is now down at the next critical level. VIX at 22 is not super elevated yet but out of the neutral zone and highest since the spring and could easily break out higher.