Good Morning Traders.....
So have we arrived at the correction point that we have been speculating about for the past few weeks? Is the new year rally coming to an abrupt end? The markets traded relatively quiet during the European session yesterday the markets were range bound making a slight leg lower to the downside as worries about the outcome of the Italian election began to emerge and concern across the Eurozone increased. The bg news that triggered the correction and late sell off we witnessed last night was sparked off the back of the FOCM minutes that showed the FED may consider slowing the pace of asset purchases, this brought USD strength to the market place and see saw a significant sell off in the $EURUSD pair along with commodities and US equities.
We had been warning traders to be weary that a correction was not far away and that it would be sparked very quickly. Yesterdays news and the correction has been aided by poor PMI data out of the Eurozone  and all markets are in the red off the back of this. The notable move this morning has been  the move in the $VIX its largest move since November 9th 2011 up almost 19%.
Happy Trading