Using contrarian indicators

So, a few weeks ago, when the S+P hit 666, the world as we knew it was over.

Now, the markets are closing at their highs, even though the bad news and earnings continue to roll out. Having only 663,000 new people claim unemployment insurance is considered a good thing...say what?

It's like the Yankees. They started out 0-2, and everybody wanted to call the National Guard in...now, they are 3-2...and people are acting like we're in the playoffs already.

So, I decided I was would look at my own charts, research my favorite Greenback analysts and sites and see if I could confirm if this rally was the beginning of the end or not. (I am pretty sure we are going to test the lows we made, but I have to be unbiased.)

I started this account in January, and every day I am more fascinated with the powerful links between FOREX and equities. Always looking for something new, I discovered the contrarian indicators page on Daily FX...really interesting (if you're in to that sort of thing.)

The one thing that you will recognize is the importance of thinking opposite the herd. Pay particular attention to how high the sentiment is for the Euro, and what they say about that. (We might consider this the first indicator that equities are done for now.)