Good Morning Traders......
Where do we begin this morning? We have to look at the FX market as we have seen the EUR making new highs across the board. The EURUSD has broken through the prior 1.34 resistance level at the time of writing the pair trades at 1.3438 all on the back of stronger then expected German sentiment data released at 9am this morning. We have seen an aggressive 'Risk On' sentiment return to the market with substantial gains across all asset classes at the closing bell yesterday here and in the US. Just to summarise levels at the time of writing:
$DOW 13873
$SPX    1498
$DAX   7820
$FTSE   6268
EUR/JPY 121.963

An interesting to point to note for $AAPL traders is that the correlation between the $SPX and $AAPL is beginning to decline, we have the $SPX taking on the 1500 level and $AAPL struggling to hold $450. If we have a close below $470 which looks very likely the up-trend from the 20098 low on a weekly chart will be breached and we could see a substantial sell off targeting the $400 level.

With the volatility we have seen during the morning session so far, we expect the market to take a breather before the US market participants enter the market. The RiskOn mentality should continue throughout the afternoon but traders should be aware that it is a Friday and we do expect to see some profit taking and large institutional investors taking some money off the table as the market is entering an overbought position on numerous time frames.

Happy Trading

@lowkeycapital