Energy Looks Interesting

This may be somewhat of a leading indicator.

The Euro and $USD usually move opposite each other; the Euro accounts for 50% of the US Dollar Index.

This morning the Euro is just about break even, at least FXE is at unchanged, the USD (UUP) is up .05%. A stronger Euro and weaker dollar are supportive of the market.

What I find interesting about Energy is there are early positive divergences in Energy broadly and Oil more narrowly, this would suggest either event risk or as I suspect, a change in the EUR/USD as a lower $USD would send the energy sector higher.


Just something to keep an eye on, I do like ERX as a play on stronger Energy for shorter term moves.