As we wait for the Yen/S&P 500 relationship to ‘normalize’ we will be using the Euro or Dollar as a leading indicator of risk from market participants for the upcoming week. Keep in mind that during this period when there are few correlations to rely on, the trading environment probability remains low and risk is high; smaller positions are recommended during this .
If we are going to be using the Euro as a positive correlation to the U.S. stock markets, then, the U.S. Dollar can be seen as a negative correlating asset. Either of the currencies can be used for the new week as an indicator of stock market direction. Keep in mind that the current market environment is still considered to be low probability; it is suggested that small positions be used until the market normalizes. The graph will not require maintenance going into the new week as all levels are being respected.