Market Sell Off | 11 / 10 /2018

By: Philip Fletcher

The market sell-off today has been in reaction to the every growing volatility within traditional markets as well as the consistent volatility within the traditional markets. Whilst the Crypto market has fallen with more intensity, it does not mean we are expecting huge bearish price action for an extended period. In fact, we are anticipating the volume in across the board to increase, as the funds begin to lay their positions to capitalise on the exciting developments within the space.

**Current market breakdown: **
Traditional

$VIX – Volatility Index: 22.55 UP

The $VIX is currently challenging the April 2018 highs, demonstrating a real element of fear underlining the current market. We are expecting this to be reduced over the coming days, however we know that when this is higher, we often see volume spikes ramp up in all markets: as we are seeing.

$DJI – Dow Jones Industrial Average: 25427 DOWN

Down 168 points today, after over 800 points dropped yesterday, the $DJI is experiencing some strong bearish corrections following an extended period of uninterrupted growth. We expect this to calm in the coming days, whilst the buyers scale their positions back in.

$XAU – Gold: 1218.46 UP

$XAU is currently rallying up 24 points today. This is very predictable as when fear enters the market in the way that it currently has, we can usually expect Gold to rally as people go for the traditionally safe asset.

Crypto

$BTC – Bitcoin: 6293 DOWN

$BTC is facing some intensive bearish pressure, however much of this is due to the technical hitting a strong resistance point which successfully pushed it down. That, coupled with the intensive losses seen in traditional markets has seen investors much more risk off so they are scaling down their crypto positions in line with their managed approach to traditional investments.

$ETH – Ethereum: 201 DOWN

Much like $BTC, $ETH is facing similar downward pressure, however we expect this to recover quite quickly and move back towards $210 & $220 within the next week. The reaction has been in line with the global market volatility and the overall red week.

$XRP – Ripple: 0.4 DOWN

$XRP needed a real correction following its huge move to the upside following its parent companies announcement of Xrapid and it finally having customers using a live platform ‘soon’. This was to be expected and whilst it is intense, it provides a good support level to buy into as we wait for the market to correct back up from its current oversold positions.