Market and Euro Update

It looks like the later in the day strength we expected to see from the Euro as of yesterday is starting to put itself together, the $USD is seeing confirming negative divergences.

The real challenge now is to judge how much the market can move on this cycle, we lost 2 days this week and I expect there would be some resolution before the elections, however there's a lot to look at and what is reflected in the averages doesn't always fit with what is reflected in some key stocks like GOOG that looks like it might have a better chance of moving up for a longer time and creating it's own shakeout.

Leading indicators may be of some help too, but for now here's the SPY as an example and what's happening with the EUR/USD which should give the market some room on the upside. It's actually amazing that the market isn't down more than 1% with the EUR/USD where it is today.

 SPY 1 min mentioned in the last post, although this is intraday only.

 The 2 min is perfectly in line with price, which tells me near term any way, the move should have more to go on the upside.

 The size of the 15 min positive divergence tells me there should be plenty of upside room, however I want to see the current reading improve.


 Even the 30 min SPy is positive, that implies a move that lasts longer than next Wednesday, however that's where things get difficult as it's a fundamental event that is a true wild card, Wall Street's best intelligence can still only guess.

 The Euro 1 min chart that I saw yesterday and expected downside early in the Euro yesterday, is starting to repair itself.

 The 3 min chart which was already in a decent position is improving as well so there's migration of the divergence.

 The $USD 1 min continues to show a leading negative divergence.

And the 5 min has deteriorated significantly from yesterday.