With high volatility and global market rout it becomes increasingly difficult to decide on the trend or change of mood.
For example, yesterday before market opened in US, extremely high volatility engulfed entire global market with developed market stocks falling in tune of 6-7%, Some like Nikkei future was down close to 10%. However market recovered sharply from there.
With so many global market and currencies and commodities, which markets to watch for a quick global view and mood.
- S&P 500 - S&P 500 is a must watch market due to its high capitalization and round the clock high volume trading in its future. Moreover S&P 500 is the most stubborn index to risk aversion. If it breaks, we truly have massive risk aversion. Key area to watch would be 1950-1965, above which bulls might push into further highs.
- Dollar/Yen - Whenever there are risks, Yen is the king except for massive liquidity risks, when Dollar usually steals the day. So as long as Yen remains well bid, it is likely to indicate risk aversion. Key level to watch would be 120.5, above which there could be sustained risk recovery.
- Indian Rupee - Indian Rupee has remained strong performer in emerging markets before China devalued Yuan, after which it close to 4.5% till yesterday, which makes it good candidate for recent risk perception. Today with Risk aversion fading, Rupee gained more than 1% today. 65 against Dollar remains key level to watch, under which risk aversion will fade substantially.
- Shanghai Composite - Shanghai lost another 7.5% today after near about 8.5% drop yesterday, while other equity markets recover. The source of turmoil makes Shanghai composite a must watch.
- US Dollar index - US Dollar index provides quick glimpse to many things from overall dollar's strength to rising FED hike bets to extreme liquidity run.
In spite of our brief and small list, it is strongly advised to have look at other markets such as EuroStxx50, VIX, US treasury yields, Euro, Gold, Oil etc. before taking trading or investing decisions.
This list is meant to provide quick glimpse at how the mood might be.


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