Euro/Dollar

Here's the Euro/Dollar chart

The first red arrow is where we were before the Euro gained, which is a large part of the reason we gapped up yesterday. As you can see presently, nearly the entire rally has been retraced. If the correlations that held yesterday, hold today, and the euro keeps declining, we should see the market move down fairly significantly.

The Q's did not react as strong late yesterday or this morning as did the SPY and I believe that is because of limit order buying being filled this morning on the XLF. Should the XLF fall, then the correlation between the dollar and the market should come back into play and be the primary driver of the market.