Daily Intermarket Outlook-July 9th

By: IntegrityFX
Yesterday, I expected today to see a pickup in risk appetite, but we did not get it. However, the S&P 500 breached 880 support level today, but was unable to sustain the move down. Tomorrow will be an important day to see the next move for equities and risk appetite. While the bank of England will be releasing their interest rate decision, there is little to no chance of an announcement as they only make announcements when the rate changes. Treasuries are making a move toward breaking the downtrend. If we see treasuries begin an upward trend, this would signal a new bout of long term risk aversion. The risk aversion would end the rally in equities and strengthen the dollar. Overall, the markets are set to make a strong move in either direction, although a new round of risk aversion would have more room to run.