The Swiss team have issued a Technical Alert as markets have moved so quickly in the last 2 weeks. With standing a bounce to 2100 Sp500, they have confirmed a bear market and therefore the probability moves to no new higher highs for the sp500 on this secular bull market. (Effectively this mirror’s JP’s call to sell the bounces).
Without delay i bring you the report inc all the cross asset market correlations here:
On a side note, in the context of having been in markets for over 20 years now these recent moves were pretty sedate. I fully expect volatility to step up later in to 2016. I suggest to be ahead of this rise in volatility by running reduced leverage levels.
And note, as leverage is a function of volatility, if many participants are of the same mind, this is a deflationary wind that blows across global risk markets with all the implications this contains!
All the best
Rich