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What currency has rallied and in turn the Nikkei and S&P 500 have fallen hard at the same time? When the Yen has hit the 20-year support line in the left chart the Nikkei and SPY fell hard (50%+ for both) back in 2007 at (1).
Now the Yen is back to the 20-year support line at (2) and the Nikkei is up against a 20-year resistance as well.
Could a Yen rally off support cause the Nikkei to fall at resistance and create downside pressure on the SPY? Possible for sure!
Premium Members at this time are short the Nikkei with a trailing stop.
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