EURO...

I was going to write about how the S&P futures are getting slammed this morning but it seems more important to write about WHY theyre getting slammed. Just take a look at the EURO. The strong weakness from todays session is taking out all the gains made over the past 5 days in one shot!

Not only is that troubling but the nearest low close in the EURO is 1.2203 and it is currently trading below 1.2200. If it remains down here for the session then this sets up an extension move lower towards the 1.20 area in the near term. This will weigh HEAVILY on stocks and should test the resolve of the equity bulls recent strength.

As I mentioned with this post (EURO uh oh), the weakness in the EURO needs to be followed very, very closely.