The key components of the risk basket and the energy basket closed with some rather mixed conclusions.
$DXY -0.14%%
$VIX +4.32%%
$SPX -0.42%%
$NDAQ -0.45%
$DOW -0.30%
EURUSD +$0.10
WTI -2.36%
BRENT -2.50%
These daily closes would usually signify that a risk off sentiment is in play, however the slight recovery on the volatility index ($VIX) negates this
Key Close
How the US dollar closes on Friday will be crucial to deciphering if we are in a risk on environment.
A close below Monday’s open would support a risk on sentiment, however a bullish weekly close could switch investor sentiment to aversion. The recovery in volatility would support this narrative.
