Stretched on a Daily basis too

The SPX vs AUDJPY spread – Part 2

This daily illustration has narrowed the time frame to the past 3 years and my annotations shows us when the S&P 500 (indexed to 100) is trading at a ‘stretch’ versus the AUD/JPY (a favourite currency risk indicator).

Today, this spread (of the S&P 500 over AUD/JPY) is at its highest in a few years. Readings above 38% portend a notable decline in the equity index.

February 1, 2021

by Rob Zdravevski

rob@karriasset.com.au