Markets are absolutely mad right now—especially indices. But before diving into the price action, let’s get the calendar out of the way. Today’s macro calendar is light, with only Ivey PMI from Canada scheduled, expected at 53.2. So all the focus remains on price movements and volatility, which are dominating the market landscape.
We’re still digesting the massive drop from Friday and the bearish gap that hit indices Monday morning. The volatility has been nothing short of incredible. During Monday’s session, indices initially plunged—some down by 3% or 4%—but then rallied strongly into positive territory, only to reverse again toward the close. It was an ideal environment for day traders.
Tuesday opens on a more optimistic note. European indices are in the green, with DAX up 1%, and American futures averaging +1.5% ahead of the open. This suggests we may be seeing a continuation of the reversal attempt. Volatility remains high, but today may bring slightly calmer price action compared to yesterday’s wild swings.
On the currency front, Tuesday is marked by weakness in the American Dollar and Japanese Yen. Meanwhile, Antipodean currencies are leading the rebound, with the Australian Dollar and New Zealand Dollar recovering after weeks of underperformance.
Commodities are also showing signs of a bounce. Yesterday brought sharp drops across the board—oil, gold, and silver all declined significantly. But today, we’re seeing the early stages of a bullish reversal on both metals and energy.
So, to sum up: Tuesday is about corrections and bounces, at least for now. It’s a market shaped by fear, recovery attempts, and huge trading ranges. These are paradise conditions for day traders, although more challenging times continue for swing and position traders.
Let’s see what the rest of Tuesday has in store.