Equity markets in Europe and the Americas have given back roughly half of Friday's enormous gains. In yesterday's report, we drew attention to the high levels of volatility in financial markets and the preponderance of abnormal moves. In the last 24 hours, we have witnessed the following extraordinary moves: the S&P500 banks index (80.2) fell sharply by 12% yesterday, its biggest one-day fall since the index was created in 1989; and, the dollar suffered its biggest one-day loss against the euro yesterday since January 2001. The thrust of our report yesterday was that markets remained volatile and dangerous. This remains our view. The chart above shows that Wall Street's primary direction is down. We expect on-going weakness by the Dow Jones industrial (11016) and S&P500 (1207), and expect this to weigh heavily on global equity markets. Yesterday's fall in the dollar confirms that the euro and pound have broken their steep two-month old downtrends. We remain medium- and long-term dollar bears
