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The Euro and the S&P 500 have had a high correlation since July. See the upper right inset in the chart below.
The Euro and the 500 index hit highs in September, 3 days apart, with the Euro high coming first.
Now the Euro is back testing its 38% retracement level and falling resistance at (1). How the Euro handles Fibonacci and falling resistance could signal the next the next big move in the 500 index.
Portfolio positioning and any shifts will have much to do with the how the Euro handles this resistance.
Double Top in the Euro or a breakout? Stay tuned!
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