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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)!