{"id":11314,"date":"2010-07-23T09:15:01","date_gmt":"2010-07-23T13:15:01","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=11314"},"modified":"2010-07-23T09:15:01","modified_gmt":"2010-07-23T13:15:01","slug":"despite-stress-tests-risk-is-back-on","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/07\/23\/despite-stress-tests-risk-is-back-on\/","title":{"rendered":"Despite Stress Tests, Risk is Back On"},"content":{"rendered":"<p><strong>By Russell Glaser<\/strong> &#8211; It looks like markets are gearing up for a move higher. Most risky  assets jumped yesterday despite negative news. The S&amp;P 500 is  testing the big round number of 1100, the EUR\/USD is approaching a key  Fibonacci retracement level, and crude oil is pushing towards the $80  level. Today\u2019s stress tests release is the key event. Wisdom says that  it\u2019s not how what the news says; it\u2019s how the market reacts to the news.<\/p>\n<p>Financial markets the past two weeks  have been choppy, with risk going on and off again. Much of the  movements have been tied to recent economic data releases. Yesterday\u2019s  economic data was mixed across the board, divided between the two  continents. European industrial orders and British retail sales were  stronger, along with U.S. housing data and strong earnings from U.S.  corporations which helped to increase trader\u2019s risk appetite. But higher  U.S. weekly employment claims, and a warning from Ben Bernanke on the  U.S. economy, countered this positive attitude.<\/p>\n<p>But yesterday\u2019s trading struck a chord: despite the negative outlook  for the U.S., risky assets were trading higher. This shows a convergence  and a red flag; when risky assets rise in spite of negative news, a  shift is occurring in the markets.<\/p>\n<p>Despite the uncertain outlook the Fed has regarding the U.S. economy,  the S&amp;P 500 was up 2.25% yesterday. The index made a close above  the recent downward sloping trend line, indicating a potential reversal  of the bearish trend to a bullish trend. Now the index has the big round  number of 1100 in its sights.<\/p>\n<p><a href=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/07\/SP500-Daily.JPG\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone\" src=\"http:\/\/www.forexyard.com\/blog\/en\/wp-content\/uploads\/2010\/07\/SP500-Daily.JPG\" alt=\"\" width=\"595\" height=\"571\" \/><\/a><\/p>\n<p><em><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\"><strong>Forex Market Analysis provided by Forex                               Yard.<\/strong><\/a><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                 may not be suitable for all investors.     There    is  a              possibility      that     you   could     sustain a  loss   of  all   of    your         investment and          therefore  you        should   not    invest   money  that   you          cannot afford to         lose. You    should    be      aware of   all       the    risks      associated with     Foreign      Exchange       trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Russell Glaser &#8211; It looks like markets are gearing up for a move higher. Most risky assets jumped yesterday despite negative news. The S&amp;P 500 is testing the big round number of 1100, the EUR\/USD is approaching a key Fibonacci retracement level, and crude oil is pushing towards the $80 level. Today\u2019s stress tests &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/fx\/2010\/07\/23\/despite-stress-tests-risk-is-back-on\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Despite Stress Tests, Risk is Back On&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-11314","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11314","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=11314"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/11314\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=11314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=11314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=11314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}