Once again, the major stock market indexes around the world are lower this morning. The catalyst for the decline was the lack of clarity coming from the European Union summit. The credit agency Moody’s has warned that France could lose it’s AAA credit rating very soon. Meanwhile, Standard and Poors is expected to cut the U.S. credit rating. The debt problems just seem to be mounting for the European Union and the United States. This morning, the S&P 500 Index e-mini futures (ES Z1) are trading lower by 12.25 points to 1246.50 per contract. Traders can expect a volatile trading week ahead of the quadruple witching options expiration which is this Friday.
The typical dollar correlation with the markets is not as usual. DXY broke above 80 yet the market is still up.
However as the day progressed it came back to the usual as the dollar rises the markets decline. It just took a little while before it kicked in.