World's ''Least Loved'' Currency Due a Bounce? Impact S&P 500?

March 15th, 2013

by Chris Kimble

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The chart below reflects that the world's "Least Loved Currency" and the S&P 500 have been moving in opposite directions over the past 90 days. Has this currency helped the S&P 500 rally? It's possible!

The chart below reflects that hardly anyone loves this currency, with only 13% bulls.

The worlds "Least loved" currency (YEN) finds itself at its 50% Fibonacci price level, and the 20% decline since last fall has bullish sentiment setting at 13%. Could this be a set-up for a short-term counter-trend rally to start from here?

If the Yen does rally, could the opposite take place in the S&P 500? Some goofy things have been taking place over the past few months … Dollar rallies with stocks … so who knows what correlated/non-correlated short-term actions might be in store for investors!

With this in mind are investors reaching the Euphoric Stage as the S&P 500 is nearing old highs and the Dow is hitting new all-time highs? The chart below was sent to Premium & Sector Sentiment extreme members last week.

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