The correlation between the S&P and the euro has broken down today, much like it did late last week.
The safest play to be is that the correlation reasserts itself in the next few days, but there is no “safe” way to trade that view.
We are in an important resistance zone for EUR/USD. I’d close my eyes and sell a little with a stops around the 1.2530 and add to the position on weakness if the correlation re-correlates.
