The Euro Risk

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Well, it's not a good day in bear-land! In fact, Beanie's appearance (which is only coincident with big up days on the market) sort of sealed the deal that this was a tard-rally.

The only thing that has me really worried is the Euro. When I first examined its inverted head and shoulders pattern, tinted in yellow below, I watched for a target just above 1.30. It hit that target (circled in blue) and reversed hard.

Of concern now, though, is that more substantial bottoming pattern, which is both the yellow augmented by the cyan (translation for Iggy: blue). This suggests a target of – gasp – 1.3472, which would be bad for the equity bears, to say the least.

We. Shall. See. If the Euro starts to get ragged and turn south, equity bears are going to stomp faces in.

0722-EUR

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