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Can Crowded Euro Trade Pull SPX Even Higher?

  • Written by Syndicated Publisher No Comments Comments
    December 20, 2013

    As the Euro hit highs in 2008 & 2011, it appears these peaks influenced the S&P 500 in the months ahead. At these peaks the Euro became popular, as 70% of investors became bullish the currency, highlighted in the chart below.

    CLICK ON CHART TO ENLARGE

    As the Euro hit highs in 2008 & 2011, it appears these peaks influenced the S&P 500 in the months ahead. At these peaks the Euro became popular, as 70% of investors became bullish the currency, highlighted in the chart above.

    The two largest declines in the S&P 500 over the past 6 years took place in 2008 & 2011, when the Euro became a crowded trade.  Now the Euro is popular among traders (65% bulls) up against a new falling resistance line, testing it for the first time with this many bulls.

    A breakout of the Euro most likely would be greeted as a positive by S&P 500 investors…keep a close eye on the Euro in the weeks ahead to see if traders push it past line (1) at (2)!

    via Kimble Charting Solutions Blog » Can the crowded Euro trade pull the S&P 500 even higher?.

    Images: via Flickr (licence attribution)

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