No turnaround Tuesday, but perhaps turnaround Wednesday?
It is still early in the day but we are seeing risk trades pare back the heavy losses from early European morning trade currently. US 10-year yields are back at flat levels now with European stocks also crawling back higher at the moment.
The DAX is still down by 1.5% but that isn't as bad as the more than 3% losses sustained in early trades today. Meanwhile, US futures are also down by ~0.5% currently after having been more than 1% lower at the lows during the session.
As mentioned earlier, when the market sees such sharp moves in one direction (possibly a third day now), the risk is that there could be an even sharper pullback/retracement during the 'pause' period. Remember, nothing in the market ever moves in a straight line.
