It's all about risk sentiment as we look to close out the week and the lack of "belief" by dip buyers this week is a little unnerving for stocks. The charts for the Nasdaq and S&P 500 are looking shaky, with the former in particular perhaps pointing to a steeper fall potentially.
I would still say that the selloff this week isn't exactly screaming panic but we may be getting to a rather uncomfortable period if the technicals start to roll over as well. That will be a key focus in the sessions ahead.
The yen is of course the main beneficiaries still but I reckon the trade is to ride the storm out and then get back in for yen pairs (long). Once markets settle down, monetary policy divergence is still the key theme when playing the long game.
Besides that, oil looks to also be faltering at the final hurdle and that is one that could see a bit of a pullback as risk trades in general come under pressure should equities sink further from here.
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