Exasperation in One Chart

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If there was a way to strangle a monitor, I’d be surrounded by dead monitors right now. It’s all because of one chart, comparing the EUR/USD for the past 120 trading days with the @ES:

0327-euroes

As you can see, for about the first half of the chart, the @ES cheerfully followed the EUR/USD higher.

But somewhere around the time I’ve tinted in magenta, they disconnected. The EUR/USD has been in a bear market for two solid months. Equities, however, have merrily pushed higher, utterly oblivious.

What scares the hell out of me is that the EUR/USD looks like it may be ready to bounce. If equities can’t fall in the face of a collapsing Euro, what are they doing to do if the Euro strengthens?!?!?

There needs to be a stronger word for a combination of “frustration” and “disappointment” than I can conjure up right now. The decoupling above is a heartbreaker.

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