Here is the most influential macro chart on my screens. It serves me well. It highlights that we get the largest moves when the markets are moving together. I don't buy into moves of individual markets unless they are in the same direction as the majority of markets. The majority equals the collective pattern or trend of the overall market, just as Risk Tolerance Threshold Theory teaches that the majority of patterns in an individual market represents the collective pattern, or trend of that market.

With all the markets shifting lower together, which is uncommon, we can’t rule out a steeper correction. While the Euro is technically in a bear market because the majority of its long-term patterns are lower, the Aussie and Stocks are not. The Aussie in blue is just above significant support at 102.75 basis cash. That the markets have all turned lower simultaneously is rare and worth monitoring. Particularly given the Yen is the current alpha market, and could see a significant counter-trend move down, back to its longer-term bull trend line -- U.S. show a similiar pattern.

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