On Wednesday, U.S. tech stocks sold off as a surge in bond yields weighed on sentiment. Investors dumped stocks with stretched valuations. The weakness has continued into Europe today and, judging by the price action on the major indices, we could be heading towards some volatile times. 

Pound bulls hoping to see a big beat on the July inflation numbers were left disappointed, as the data merely met expectations. Although off its lows, sterling remained under pressure after breaking the $1.27 handle overnight following yesterday’s news of weaker-than-expected growth in wages, and amid ongoing concerns over a no-deal Brexit outcome.

Both yellow and black golds are currently finding support from heightened fear among investors that the United States and its allies may soon launch a military strike against Syria. This is in response to the suspected chemical weapons attack in the country. The fear is that there might be counterstrike by Russia, which could further damage Moscow’s relationship with the West.

The new month has started with a bang for the S&P 500. The U.S. benchmark index has risen to a new record high. The incredible bull run continues, now in its ninth year. Clear blue skies ahead? Well, not quite. While the latest breakout is clearly bullish in the short-term, there are three factors in particular that make me wonder if this is the final melt-up before we see a large correction.

It’s been a roller coaster ride of a week for all major asset classes, but the moves in oil were perhaps the most harrowing.

Since late March, AUDUSD(CME:ADZ4) has been trapped in a tight range between support at .9200 and resistance at .9500. Over that time period however, the price action has carved out a large head-and-shoulders pattern.

Gold exploded higher last Thursday on the back of a relatively dovish statement from the Federal Reserve, but prices stalled on Friday.