Currently Weighing fundamentals vs. technicals
The Dow Jones ability to move sharply lower on Tuesday reflects investors real market sentiments as some of the largest multinational companies mixed earnings and with Moody's credit rating downgrades for five of the European regions surrounding Spain have rekindled serious concerns about the slowing global economy.
The ability of the US dollar has firmed as a sign of revival for safe-haven activities have move towards that direction. While the stock markets decline, have redefined that stock market assets becomes a higher risk from soft corporate earnings reports reflected by the major Dow Jones industrial major brand names.
Traditional safe-havens, such as the Japanese yen or the Swiss franc, could serve as an alternative strategy for US investors keeping the dollar in place at these higher levels. The only contrary to this scenario is that Japan is also having more serious difficulties with their very own economic growth.
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