Risk and Liquidity Clash at Critical Moment for S&P; 500, EURUSD

We were unable last week to mark the critical, fundamental breakdown in market sentiment that would have capsized the S&P; 500, EURUSD, AUDUSD, NZDUSD and so many other sensitive assets. This significantly complicates the picture as we now face a heavy forecast for risk against the backdrop of a stark speculative liquidity drain related to the US seasonal holiday. While we may still find ourselves tumbling with the pent up breakout threat early next week, establishing a consistent trend wil be exponentially more difficult to accomplish. We look at the clashing technical and fundamental conditions next week holds as well as the historical performance for speculative markets through the final 6 weeks of the trading year.