Just to follow-up on several of my recent posts, the Euro continues to weaken and is flashing ominous signs. The Euro/Yen cross is in real danger of breaking lower to retest the October lows, which is highly likely to suppress risk appetite in equities. Monitor this chart. Beyond that, the high growth leaders since 2009 remain problematic. Salesforce.com also broke down from its sloppy “War box” consolidation on its weekly chart. If the bulls cannot recapture $110-$115, this looks to be a short on any bounce.
Until charts like these continue to improve, with the headline-driven Euro and high growth leaders weak, resisting the urge to pick a bottom to stocks is one of my main priorities. Beyond that, value plays look to be more attractive than growth and momentum ones, even if the market stabilizes.