Archived IMT (2009.05.11)

Note that since the March low, the pullbacks in equity indices always limited to no more than 2-consecutive daily losses. Wed have to see at least 3-consecutive daily losses in the S&P500 and the Dow for the bears to feel less stress and the gains in USD to be more concerted. A classic case of risk aversion trades in FX is underway as US equities drop 1.3%, lifting USD and JPY off their Friday lows. EURJPY hits 132.25 and is set to call up 131.80, while GBPUSD battles at the 1.5080 support. USDJPY accelerating losses to 2-week lows and targeting 96.90. Equities may sell-off by as much as 4% today but this may not yet herald the end of the 9week winning run.