Although I'll be the first to admit that I'm not quite sure what to do with this information, I wanted to share a chart that illustrates how the Euro and US equities have recently totally detached from one another.
For a long while, these two were so much in lockstep that we might as well have just shut down one of them, since there was no point in having a clone. (Below the black line graph and right scale are for the Euro, and the blue line graph is the ESU2).
Just over the past week or so, these markets have had a nasty argument and parted ways. Regretably for the bears, it seems that strength in the Euro still flows instantly to stocks (witness last Friday's Euro-gasm), but an event like this morning (in which the Euro was down about 2% from Tuesday's pre-holiday close) barely caused the US stock market to even blink.
My bearishness on the Euro is as strong as ever, but I must say, the resilience of US stocks in the face of continuing Euro weakness (which has more than wiped out the entirety of last week's Euro rally) is troubling.