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ETF Technical Market Analysis 2-11-2010

|Includes: FXE, IWM, SPDR S&P 500 Trust ETF (SPY)

Markets rose today but finished with two different stories.  The large cap ETF SPY rose to the top end of its channel and stopped while the small cap ETF Russell 2000 broke out of its range.  Since the prevailing winds of equities are driven by the dollar I think the EUR/USD relationship may be the tiebreaker.  The EUR/USD found more resistance today and fell below 1.37.  A fall below 1.3575 will lead another leg down in stocks.   See charts below:

Technical Analysis Charts here

Sea Lion Capital Management LLC

Disclosure: No positions