In the chart below, which was posted on 8/29 (see post), I suggested a “game changer” was about to take place, with a rally in stocks, due to the pattern in the Euro/Yen. Since that post the 500 index is up almost 7%!

Now what?  First off… I started working on this chart at 5:15 a.m. (central time), so the day is far from over and I am still on my first cup of coffee!!!  Falling wedges are bullish 65% of the time, so a rally out of a falling wedge isn’t a surprise.  Humbly the size of this currency breakout did surprise me to some degree though.

Unless history changes, the rally in the Euro/Yen is suggesting higher stock prices. 

I find the timing of this upside breakout very interesting with the 500 index at the very top of  the multi-month trading range/resistance.  Euro/Yen is suggesting a NEW LEG HIGHER in equity prices! 

Game plan…Keep your ticket to ride as well as keep stops in place!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past