{"id":13504,"date":"2012-08-25T09:18:51","date_gmt":"2012-08-25T16:18:51","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=13504"},"modified":"2012-08-25T09:18:51","modified_gmt":"2012-08-25T16:18:51","slug":"bearish-divergence-australian-dollar-sp500","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2012\/08\/25\/bearish-divergence-australian-dollar-sp500\/","title":{"rendered":"A Bearish Divergence As Australian Dollar Stalls While S&P 500 Jumps"},"content":{"rendered":"

(This is an excerpt from an article I originally published on Seeking Alpha on August 17, 2012. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

I have written multiple times about the usefulness of the Australian dollar (FXA) as an early indicator or confirming signal for directional trading on the S&P 500 (SPY). For an example, see “Another Key Bullish Divergence Between The Australian Dollar And The S&P 500<\/a>“. I have stayed on alert for any signs of a bearish divergence between the Australian dollar and the S&P 500. Such a critical juncture may have finally arrived.<\/p>\n

The Australian dollar experienced an important breakout against the Japanese yen last week<\/a>. The currency has made little progress since then. Even more importantly, the Australian dollar has stalled out against the U.S. dollar. At current levels, AUD\/USD rests at the April highs which served as an important breakout point in late July and early August. Meanwhile, the S&P 500 has broken out toward fresh multi-year highs.<\/p>\n


\n
\"The<\/a>
The Australian dollar has stalled against the U.S. dollar and a breakdown looms<\/figcaption><\/figure>
\n
\n
\"S&P<\/a>
S&P 500 breaks out to within inches of a new 4+ year high even as volume remains low<\/figcaption><\/figure>
\nSource: FreeStockCharts.com<\/strong>
\n<\/center><\/p>\n

If history repeats itself, this early divergence between AUD\/USD and the S&P 500 (on a daily level) could signal the beginning of the end for the current rally in stocks despite the increasingly bullish outlook<\/a>. The last major divergence occurred after AUD\/USD last topped out in late February of this year<\/a>. {snip}<\/p>\n

{snip}<\/p>\n

Be careful out there!<\/p>\n

(This is an excerpt from an article I originally published on Seeking Alpha on August 17, 2012. Click here to read the entire piece<\/a>.)<\/strong><\/p>\n

Full disclosure: net short Australian dollar<\/p>\n","protected":false},"excerpt":{"rendered":"

(This is an excerpt from an article I originally published on Seeking Alpha on August 17, 2012. Click here to read the entire piece.) I have written multiple times about the usefulness of the Australian dollar (FXA) as an early indicator or confirming signal for directional trading on the S&P 500 (SPY). For an example, … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[20],"tags":[308,310,998,309,65],"class_list":["post-13504","post","type-post","status-publish","format-standard","hentry","category-forex","tag-audusd","tag-australian-dollar","tag-correlations","tag-fxa","tag-sp-500"],"yoast_head":"\nA Bearish Divergence As Australian Dollar Stalls While S&P 500 Jumps - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/08\/25\/bearish-divergence-australian-dollar-sp500\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Bearish Divergence As Australian Dollar Stalls While S&P 500 Jumps - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on August 17, 2012. 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