Stock markets have fallen heavily and the Vix has soared in the past 24 hours due to investors pulling out of Deutsche Bank concerned that the bank is about to become the next Lehman Brothers. Shields up, red alert – risk off sentiment in the market. Should we see continued sell off during the London or New York session then we can expect to see further Yen strength and commodity weakness. Stock markets are currently at support – I have also highlighted resistance based on Fib though if the markets fall there is a possibility we will not retrace. Should we move up from support, keep an eye on the Vix to see if volatility drops to indicate risk on sentiment returning to the market.

S&P 500 H1

FTSE H1

Euro Stox H1

Dax H1

Nikkei H1

Vix

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