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 is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
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