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Wall Street Pauses After Explosive Rally as Bonds, Risk Currencies, and Equity Markets Reacted to the News
Wall Street pauses after an explosive rally. Markets digest the surge. Bonds, risk currencies, and equities all reacted. This intermarket dance reveals sentiment shifts. Traders watch for the next move. Wall Street was in sombre mood following the explosive move the previous day, where risk on sentiment dominated. Equity markets surged and risk currency sold off strongly and reflected equally in bond markets and yields.
Why the Pause After the Rally
Explosive rallies often end in pauses. Price pushes higher fast. But momentum fades. Volume price analysis (VPA) spots this—high price on low volume signals weakness. Quantum Trend Monitor on NinjaTrader shows alignment fading. Consolidation follows.
Intermarket Reactions: Bonds, Risk Currencies, and Equities
Bonds sold off as yields rose. This supported dollar strength. Risk currencies like AUD or NZD weakened initially. Equities paused—profit-taking emerged. VPA confirms relational flows—high volume in bonds correlates with equity caution.
VPA Insights During the...