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)!


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