Add this 3M chart of the same AUDJPY-SIMSCI divergence theme. What’s notable is that AUDJPY appears to be stepping down to a lower range where it traded between 2010 – late 2012 while SG30 remains at lofty levels.
Month to date overlay of EUR, GBP, NZD, AUD, CAD, SGD, JPY and CNH showing their relative performance/strength against USD. Three trading themes (performance clusters) to choose from.
Stock indices continue to be bullish. DAX 30 is correcting, Nikkei 225 could be correcting soon. Until 13-week ema is broken, no reason for alarm.
It appears there is a big divergence between the usually highly correlated HSI, SiMSCI and AUDJPY. Who is smarter? The stock market or the forex market?
There is a distinct bearish divergence between XLE (Energy Select Sector SPDR ETF) and WTI. XLE has completely reversed it’s post-Trump election gains and is now in the red.