This currency indicator is suggesting at least a 7% decline in the S&P 500 is around the corner….Will it be different this time?

CLICK ON CHART TO ENLARGE 

Shared the above chart with Premium Members on 3/14, reflecting that each time the Australian Dollar/U.S. Dollar ratio broke support over the past 10 months, the S&P 500 fell at least 7% in value.  Below is an update to this above chart, reflecting that the AUD/USD ratio continues to break lower support lines.

 

CLICK ON CHART TO ENLARGE

What ever the reason....weakness in the AUD/USD ratio has brought about declines in the S&P 500, one of them a 16%+ decline in two weeks last summer.  Is this indicator correctly pointing to lower prices in the S&P 500 again?   Keep a close eye on it as it is breaking support at (1).

Be Sociable, Share!

Comments are closed.