Wednesday, May 22, 2013

$USD makes new intraday high-SPY moving down

As mentioned recently, the $USD is having a much stronger market correlation since it broke out of its base about a week ago. We have the $USD shooting up parabolically-the correlation is inverse, we'd expect the SPY to move down, remember there was that last (first 1 min divergence of the day) divergence mentioned in the last post.

The SPY is reacting to both the divergence and the $USD which I believe are linked as the $USD started a move first.


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