Many use the Australian $ as a tool to determine if they should over/under weight risk assets, since the AU$ has a decent track record of suggesting future movements in the S&P 500.

The above chart reflects that SPY has taken a few pauses in its bull market when the AU$ has hit line (1).  Of late the AU$ hit this line again and is now breaking support at (2).  Momentum is on the side of the bulls at this time. 

Has the AU$ lost its touch as a leading risk indicator?  Stay tuned!

Crude Oil is another great leading indicator for the S&P 500.  Crude is up against a resistance line, just like the AU$.  ($100 Crude help SPY post)


Get All of Our Weekly Research

Kimble Charting Solutions’ weekly combo lets you save on all of our weekly research

Learn More

New site launch promotion! Lock in our previous pricing until 8/31/2016.