Where does Appetite for Risk go from here?

This week, I am taking a Technical look at the S&P500 & Shanghai Composite Index to see how the Euro and Aussie may perform, based on Risk Appetite.

The past week delivered the kind of activity that could support the theory that a large risk off trend is underway. Momentum, however, has failed to confirm that the bears are in control…not yet.

Will the S&P 500 align with Euro’s, Risk Off move? Or Will the Aussie align with the Shanghai Composite’s, Risk On move? Confirmation of a true risk unwinding is not yet seen. Neither do we have a convincing appetite for risk.

So, back to the sidelines I say. In the meantime, I am sticking with the underlying sentiment, which means following the Primary Fundamental Themes. No other pairs are better at representing true market sentiments and what matters to the market, other than...AUD/USD and EUR/USD

EuroDollar and SPX500

AussieDollar and Shanghai Composite