The Worrisome Euro

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Well, the only big short I had coming into today was FXE, and I got stopped out of it at a loss. I’m not touching it again, because the EUR/USD has pushed too much to the upside. More important, I am quite concerned that the inverted head and shoulders pattern – – very much intact – – could pose a meaningful risk to equity bears. This demands continued observation, as it could certainly influence equity strength in the weeks ahead.