- Overbought closed with a crossover last week
- Abnormally high correlation with the USDollar
- At a 1 year minimum ATR
These technicals along with America's politica climate(i.e. ongoing budget problems) , the EU's internal strife and disparity, and Japan's race to devalue the Yen lead me to believe we may be seeing a multi-year triple top forming on the S&P 500 . If full on risk aversion kicks in, it would make a lot more sense for the USD to continue up while the S&P drops.
Well. Today, we've seen an nice exthausion move. Let's see, if this was the last up swing for a small pull back, or the index taking as short breath for a further move up.