The S&P 500 futures are managing to cling to the base of the cloud formation on the 240-minute chart as this is being written during trading at lunch time in Europe.

The macro conditions in the market seem somewhat more favorable at present and as a corollary the US dollar is coming under considerable pressure, but beneath the surface there are still signs that the risk appetite is waning.

I would only get interested in the short side on the S&P 500 if there is a decisive break below 1308 and if it is accompanied by a topping out pattern in EUR/USD -- both of which are plausible in today’s session -- but as commented here many times the mega-generosity of Chairman Bernanke is a wonder to behold.

I would also like to mention that I shall be a keynote speaker at the Traders Expo to be held in London on April 8/9.



AUD/CHF headed down towards the 0.93 level, as discussed here yesterday, and I'll be looking for any upward surges as opportunities to get short again as I expect this level to be tested in coming sessions.



ACWI, the exchange traded proxy for the MSCI World Index, clearly reveals negative divergences and while I would not be surprised to see a concerted effort to mount rallies the tide may be turning for this key global index.




Here are comments from ten days ago and they seem even more apt today.

Underscoring the general theme of today’s letter that the emerging markets are experiencing attrition across the board, and distribution characteristics are clearly evident, is the weak chart for PXR, which is a rather lightly traded sector fund called Power Shares Emerging Markets Infrastructure.



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