NOT JUST FOREX: Stock Indices Positive Tone

ON 4TH QUARTER ENTRY

Anticipating a corrective move on the indices have paid off from the price recovery not only for stocks but for the USD as well. This may turn out to be supported with a slight increase in volatility against a backdrop of recent declines. And with Friday's data above expectations would provide the eminent push for a USD run as against several resistance area seen on a technical angle.

This 4th quarter would be an attempt for a new found price recovery among the major indices with the DOW JONES nearing a 16920 - 17040 range recovery may well take the market by surprise as the USD would increase the likelihood of a synchronize price direction contrary to the norm would be ideal. For a gradual and well pace price recovery would probably be a case when market conditions would occur on the first month of the 4th quarter. A retest of these market high conditions can be seen when prices starts to move towards the North combined with a variable decline on volatility nearing the November month.

For now, expectations of a better jobs data well above would trigger a push for the USD. Any sudden changes on volumes and momentum driven price action may tend to fizzle down towards the closing week. In other words watch for the pull backs on every risk events in the near future.