S&P500 & Euro Positively Correlated
- Posted by JC Parets
- on October 26th, 2011
Are you looking for clues about the next big move in stock market? It might not be a bad idea to follow the Euro. Take a look at the correlation between $SPY and $FXE going back a little over a month (30-min timeframes):
Equities are ripping this morning, but Euro weakness is telling us that something might be wrong. Both $SPY and $FXE are running into former support from this summer. This support appears to be turning into a resistance for $FXE.
Will $SPY follow?
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J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He earned the Chartered Market Technician designation (CMT) and is a member of the Market Technicians Association. More
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