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Chart of the Week: Intermarket Relationships EWG

Asbury Research

Asbury Research
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CMT Chief Market Strategist

iShares MSCI Germany Index ETF (EWG)


The chart below shows that the mid October breakout higher in EWG, from almost a year of sideways investor indecision, targets an additional 5% rise to 31.25. EWG’s statistically significant and stable 20-year positive correlation to the S&P 500 suggests that as goes the German stock market, so is likely to go the US broad market.

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