QuantitativeExhaustion

Large Spread Between US Bull Market and Euro, Very Concerning

FX:EURUSD   Euro / U.S. Dollar
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As you can see in the chart last time a spread between SPY and Euro of this magnitude was during 2000 Tech Bubble Peak. What you might also notice is the fact that in 2000, Euro bottomed while SPY hit an all-time high. If price action repeats we should see Euro capitulate and higher highs or a flat top for S&P 500 Index / SPY ETF . After SPY-Euro divergence is maximized the two would later reach an equilibrium.

Comments

The relationship to the Aussie dollar is very strong also. And that has been weak lately also. Very concerning for the S&P500 for me.
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Yeah. should revert to some kind of mean sooner or later. March 27th congress has to pass some budget measures, might be the trick or treat trade.
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nice chart JR! expecting the same!
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nice fractal
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Nickmail QuantitativeExhaustion
thanks man! you make a great job too!
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I noticed the comparison between i-ii, and the later fractal had a more volatile drop. Also, i-ii in comparison had a slower rise on the first fractal compared to the second fractal. With both imputes, I wonder if this is always true... usually you have a deeper iv on the second and and flatter v as well. Market technicians have not put out enough evidence or research regarding fractals, but there should be.
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