Market movements during risk-off events can be particularly challenging for traders, underscoring the critical need for thorough preparation, both in terms of chart levels and mental fortitude, to effectively navigate this volatility.
US stock indices are currently paring their overnight declines, though prices have yet to reclaim their previous day’s highs.
This rebound follows the release of better-than-expected University of Michigan consumer sentiment data, which came in at 63 against an expectation of 53.5 (up from last month’s 52.2 reading). Notably, year-ahead inflation expectations were revised down significantly, from 6.6% last month to 5.1%.
In the commodities complex, Oil and Natural Gas are consolidating at higher levels, though off their overnight peaks. WTI crude, after surging by as much as 10.85% in the overnight session, has since seen a correction. Broader energy commodities are currently trading with gains of approximately 5% on the session.
Gold although off its overnight highs, hasn’t corrected as much as other assets. The precious metal, which in the past few weeks is the best instrument to measure market sentiment, is trading around 3,420 as we speak.
