Thursday, August 27, 2009

Currency Non Confirmations

Below is a chart of the EURO/Yen and the Dollar/Yen. 
What is interesting about this chart is the non-confirmations. The times that highs were confirmed by both currency pairs and the ES, resulted in further upside. But non-confirmations by both currencies (highlighted with the Green Bars) resulted in dramatic moves. 
Also, the USDJPY has given much earlier warnings that not everything is ok in wonderland on many occasions. Trend line breaks are very prescient.
This is not a scientific analysis...just an anecdotal one in that we are currently experiencing a non-confirmation by both currencies of new highs in the SP500.

This is an ominous sign...are dramatic results to come?
click on the chart for a clearer view
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