Recently, I've highlighted non-confirmations in the stock market, as new stock highs in the large cap indexes were not followed by highs among small caps and many stock sectors.
What we also see is that the recent highs in large cap stocks have not been followed by new dollar lows against the euro (top chart), yen (second chart from top), Canadian dollar (second chart from bottom), and Swiss franc (bottom chart).
With these major currencies topping out against the U.S. dollar and stocks showing divergences at highs, we may be seeing a major turn in the dollar-fueled "risk trade".
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I've also noticed a complete leveling off of momentum/velocity of EURUSD movement. 1.50 is what we keep backing back away from (i.e. resistance). Especially when looking at 1 yr chart of EURUSD that sprang in my eye anyway.... I've heard big players are shorting EURUSD vola into the pre-christmas phase. Most people would be surprised by strengthening of USD... || My view of equities was expecting a stable to upward move into xmas (till last saturday) - as liquidity on sidelines is huge and dividends are decent and end of year window dressing etc might suck even more $ into equities...
JPY, USD, Treasuries all showing considerable strength as the ES attempts to hold >1100.
Then again, this occurrence has been going on for quite awhile.
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