Thursday, April 26, 2012

Was Spanish Downgrade Leaked?

In looking at this chart of FXE (Euro ETF), I have to wonder whether the Spanish downgrade was leaked to FX traders and Wall Street. If so, that gives a whole new meaning to the strong 3C negative divergences in the DIA and IWM today.

The 3C trend was largely lateral and listless before today when it went clearly leading negative. With divergences this clear and out of recent character, I don't put much faith in coincidence.


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