Today’s US session is starting to look as though it could be critical.

The S&P 500 looks destined to test the 1040 level, and if we close below that, then there could be mayhem across many asset classes. Cues from the euro, Australian dollar and most specifically the yen will be vital to watch today.





Gold has broken to a new record high in trading this morning above $1250 per ounce. The tone of the market suggests that the investment banks that normally fade the fear element which drives gold may be about to get trumped.

Targets above $1300, mentioned here last October, could be seen soon.



USD/JPY is my focus asset class of the day - unless the S&P 500 breaks down.

On the 15-minute chart a trend-line has been violated - it is now incumbent on those who do not want to see a market rout to try to restore the poise of this key cross rate.

If we break below 90.40, then it would be time to buckle one’s seat belts.



The chart for EUR/CHF shows that the support of the Swiss National Bank for the euro seems to have been abandoned. Maybe they know something that is suspected but not yet widely confirmed by global asset allocators, i.e. that it would be a good time to suspend any purchases of euro-denominated assets as they are likely to get a lot cheaper.



After my comments yesterday about Brunswick (BC) it appears that, as they used to say on Top 40 radio in the US, the hits just keep on coming.



Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market.