Yesterday when I said that the tensions between Russia and the West were causing volatility this is not ideal if you trade intraday. Today we can see why. The FTSE was trading near 6730 early this morning suddenly it spiked to 6770 on news that Putin ended military exercises in western Russia. Before the market opened the index was back to the 6750 area and now as I write the FTSE is near 6820.
In this environment stop losses are at risk, this is why it is not recommended to trade intraday when volatility is high. Over the coming days the market could be more volatile, depending on whether the news coming from Russia will be positive or negative. I expect a resumption of the uptrend once both FTSE and S&P complete their respective corrective wave.
In the UK it would appear that uptrend has already resumed. Today's rally is an impulse wave [i,ii,iii,iv,v]. In the US however, there is no evidence the uptrend has resumed.
In the S&P the impulse wave was down, suggesting that the trend is still down. Why in this case the S&P is trading near the previous high in pre-open? Probably because the smart money has not yet moved in. The real action will start after 14:30. The S&P has the potential to decline sharply today.
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