SPDR S&P 500 (SPY)

[imiloa]

Scripo, thought you might appreciate this one:

This indicator suggests this week’s stock-market rally won’t last
The yen’s resilience vs. the dollar shows investors remain apprehensive

U.S. stocks are on the verge of logging their first three-day rally since December.

But one widely watched market-based indicator suggests this rebound won’t morph into the sustained recovery that many are hoping for.

The dollar has languished below ¥115 this week, even as Japanese officials warned of more monetary and fiscal stimulus, and weak data showed economic growth in the world’s third-largest economy has remained sluggish — all of which would typically cause a currency to weaken.

The Japanese yen is a popular safe haven, so its continued strength suggests that investors remain apprehensive about the prospects for global equities.

But given the strong historical correlation between U.S. stocks and the dollar-yen exchange rate — which can be observed in this chart — it’s likely that one of the two markets will capitulate, analysts said.

http://www.marketwatch.com/story/this-indicator-suggests-this-weeks-stock-market-rally-wont-last-2016-02-17