You'll be tempted to short SPY in the wake of the tragic terror attacks on France. But not so fast. Sure, these attacks but their effect on the financial markets is not nearly as detrimental as 9/11. The forex market did show a dip in the Euro, but not nearly drastic enough to be fearful. Nevertheless, expect extreme volatility as the markets scramble to equilibrate. Expect a big drop in the beginning, and then a recovery. I've drawn out some levels we can expect to test.
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