CBOE:VIX Volatility S&P 500 Index
In order to answer the question of Market direction over the next week or so or perhaps little longer I think this index can help as part of the co-relationship analysis. It is known fact that whilst this Index continues to decline (possibly heading to 13 level), the Equities in general will continue to rally. Whilst Equities continue to rally, currency pairs like EURUSD , GBPUSD etc will continue to gain and Dollar Index decline. The relationship between Equities, Dollar Index & Currencies is not 100% but close for our consideration. Also it is important to recognise that some times Equities lead and at other times it follows the Currencies at major turning points.