S&P500 & Euro Positively Correlated

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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