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:
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.
