The primary reason for the appearance of risk on is trading houses etc using it as a buy on the dip opportunity, calculating this is a good pivot regardless of further selling because price will return to this point in stocks eventually. Very calculated but you must bear in mind their approach is broader overall. This is still a heightened risk off environment. Give it time. If I am wrong, it means geopolitical tension, the kind that means world war, is not present.
I am not the only one who sees that it is present and extremely heightened.
There is a little market reaction to comments from the US that (We/They/Them) will not retaliate to a hard Russian response slowly creeping into markets but one might think it will not stick in coming hours. Overall stocks will go on an uphill run in 2025 but this is a little dicey in this spot. That would be risk off for the moment.
Day Trading tip: The side of the mqrket more vulnerable is the one where there are day stops… market will probe to see if there are stops… and example is the current attemot to test EURUSD 1.06
USDJPY (last 154.01) bounced off 153.40 on the geopolitical headline dip… see this from an earlier post
In any case, failure to establish 155+ puts range at 152-155 where 152.14 is key support and needs to trade hold 153,40 (briefly broken) to cool the downside risk.