By Chris Kimble
As the Euro hit highs in 2008 and 2011, it appears these peaks influenced the S&P 500 in the months ahead. At these peaks, the Euro became popular, with 70% of investors becoming bullish the currency, highlighted in the chart below.
The two largest declines in the S&P 500 over the past 6 years took place in 2008 and 2011, when the Euro became a crowded trade. Now the Euro is again popular among traders (65% bulls) up against a new falling resistance line, testing it for the first time with this many bulls.
A breakout of the Euro most likely would be greeted as a positive by S&P 500 investors. Keep a close eye on the Euro in the weeks ahead to see if traders push it past line (1) at (2)!
Should support break, the right side of this potential Eiffel Tower pattern could put a big hurt to the value of bitcoins!
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