Will the $FXE tells us when the correction will happen in the stock market?
The question every investor is asking himself, how many upside is there in the stock market? The key is to go short on the correct technical signals! The volume is unusually low, and it’s easy for the FED to push the markets higher on any opportunity. So traders must be a little more careful on buying stocks on the short side.
The light volume tells us that institutions are not buying or selling, it's just the average investor who is buying stocks on every dip.
This weekend, I'm seeing this daily head and shoulders pattern on the $FXE. So this tells us that there is some more downside in the Euro.
Personally I will look to take a short position once the $FXE will close below the neckline of the head and shoulders. As a technical trader, you always want to use a stop loss to protect your investment. In this case, we will stop ourselves out on any close above the neckline of the head and shoulders pattern.