As such, the calm and steadier mood we’re seeing today belies the nervousness and fragile sentiment that is prevailing currently. Here’s a snapshot so far on the day:

• Eurostoxx +0.6%
• Germany DAX +0.5%
• France CAC 40 +0.7%
• UK FTSE +0.4%
• S&P 500 futures +0.2%
• Nasdaq futures +0.1%
• Dow futures +0.3%

After being burned by the Nvidia hopium yesterday, tech stocks are the ones that are less enthused so far today. And after the ugly reversal, the S&P 500 has pretty much erased gains for the week although the Nasdaq is still up a little over 1%. The Dow is the laggard as it is now down over 1% on the week coming into today.

In any case, just be wary that the pessimism can quickly accelerate in US trading as we have seen time and time again in the past two weeks. So far, broader markets are also calmer on the day as such. But if we are to lean to being more risk averse again, the dollar is likely to shine before the weekend comes along.

This article was written by Justin Low at www.forexlive.com.