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The S&P 500 and the Australian $ have a decent correlation ratio over the past couple of years.
Several peaks in the 500 index took place right along with peaks in the Australian $ over the past year. Keep a close eye on the AUD$ to see how it acts at prior key resistance.
If history is a guide, a breakout in the AUD$ would be a positive for the 500 index at resistance!
Chris – thanks again for a great site.
I am jumping off the train. PFF, IYR, IYM have made nice runs.
VIX hit 16 today. That is where it bottomed in counter trend rally May 2008.
VGK has not broken above recent tops in 2011 and is near 200 day below those tops. Europe is not confirming the rally just like the US did not in 2008.
China markets are still struggling.
The greece endgame is near – sell on the news, regardless of what it is. I think the market is going to force the ECB’s hand to QE (for real not LTRO) just like it did here.