Euro S&P

With the dollar strengthening and the Euro weakening I took another look at the S&P priced in Euros.

If the strengthening dollar (weakening Euro) can boost U.S. equity prices we will soon see a nice 'buy' signal following a positive test of the 2003 (yes - "2003") lows in the Euro:S&P relationship. A rally in this relationship could quickly work its way towards 2007 highs and a chance to confirm a double bottom:

The positives on this chart are the dual doji at 2003 support and the rising MACD histogram. Both work on the background of oversold short and long term stochastics following a successful test of the early 2008 low.

So while the dollar priced S&P shows some leg work to do as it builds a handle, it might not be as far away from the good times as some might otherwise think.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, market alerts and stock charts website

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