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SP500 and the Yen: Follow the Yen my Dear?
July 21 2016  ​( From TradingView, CNN, Blommberg  )
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​​The Situation

In these greedy times (interesting to note​​ the Fear and Greed Index
​from CNN Money is coming from Fear post-Brexit on June 27 2016
​to the Extreme Greed Level now at 90). It is interesting to look the
​behavior of ​the ​YEN
(first chart below - top panel - candles) ​in ​relation to
​the Mighty SP500 ​
(first chart below -bottom panel -bar chart)

Following the YEN can gives us a clue about the next trend in the
​Mighty SP500...​​​​​ Interesting to note that in both cases (Yen and
​SP500), both first highs made almost a few weeks apart (May 20 2015
​for ​the ​SP500 Index at 2134 and June 5 2015 for the Yen at 125.85.


But few of us realize that the Yen broke a Monthly Uptrend Channel
that started back in October 2012. All that when the BOJ (Bank of
​Japan) announced their new negative rates policy on January 29 2016.
​ 
​ ​(See first chart below - Downtrend Channel)​

​​The Mighty SP500 broke already its Monthly Uptrend Channel as the Yen was in a dead cat bounce after that Helicopter Money rumor started. (See first chart below)​

But the most interesting technical factor is usually when we have the correlation between the Mighty SP500 and the Yen getting near 1, then we are at risk of tiny corrections in the SP500.
(See Second Chart Below - Second Panel - Blue Area - Correlation)

Also observe that as the Mighty SP500 is making higher lows and higher highs, we have the Nikkei 225 making lower lows and lower highs.​​ (See Second Chart Below - Bottom Panel - Ellipses)

​Read Also:  Yen Climbs on Kuroda as European Stocks Fall From Four-Week High













Louis Pasteur
"Chance favors the prepared mind."

SP500 and the Yen: Follow the Yen my Dear?  $SPY,  $USDJPY #Trading #investing #yen #SP500

DAILY
YEN (USDJPY - Candles - Top Panel )
Correlation between Yen and SP500 Index ( Blue Area - Second Panel )
​SP500 Index ( Bars - Third Panel )
Nikkei 225 Index ( Bars - Fourth Panel )

MONTHLY
​YEN (USDJPY - Candles - Top Panel )
SP500 Index ( Bars - Bottom Panel )
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