Market Update

I should have known with the last several posts the move in the market was currency oriented, specifically the Euro, this partly explains why the averages and stocks I'm following as Bellwethers stayed positive and didn't turn negative.

As a quick example, the NASDAQ and SPX Futures...

 ES stays positive

NASDAQ Futures stay positive, there are many more averages and timeframes that stayed positive, this is just a small look.

As for the Euro, remember how tight the correlation with the market is, this is actually more because of the $USD, but the Euro is 50% of the $US Dollar Index and as such the Euro becomes an excellent proxy for FX/Equity correlations.

 The Euro is down intraday lower when the market hits about the same level just before 2 p.m., but the Euro continues down, not a big move, just some backing and filling.

 The larger view of the Euro/SPY

 This is an intraday 1 min chart showing a small negative divergence in the Euro near the open, it drifted lower most of the day and then the 1 min chart, which is only for intraday signals, starts to go positive. Thus the Euro should recover from this pullback soon.


The 2 min, next timeframe in the Euro/FXE only had a slight negative, but went positive in to most all of that pullback, again suggesting the Euro makes a new leg higher from here.