The likelihood of some dramatic moves in FX are increasing and other asset classes are now at risk from big FX and commodity dislocations.

The S&P 500 is tantalizingly close to the 1170 target level which this index still needs to overcome to regain the levels seen before the May 6 plunge.

SanDisk (SNDK) looks vulnerable based on money flow and volume characteristics.

Clive Corcoran would not be surprised to see a further rally in the S&P 500 up to the 1170 level.

The Russell 2000 is finding it hard going to penetrate the critical 680 level, and the waning appetite for the higher-beta stocks needs to be monitored for clues as to the near-term direction of US equities in general.

Fundamentals for the euro may have been assisted by China’s announcement over the weekend that it will be coming to the assistance of troubled EZ states, specifically Greece.

Spot gold recorded its highest-ever London fixing this morning.

The end-of-quarter window dressing to try and break above 1150 on the S&P 500 is causing some extremely over-stretched conditions in the FX market, which is all part of the effort to provide the most supportive backdrop to further gains for equities.

Clive Corcoran suggests that the S&P 500 could well touch 1170, but the potential benefit of maintaining a long position beyond this 1170 level would not fit his risk/reward trade-off criteria.

The target which is now on the agenda for the S&P 500 cash index, and which could come this week, is the 1173 intraday high from May 12.