The S&P 500 extended its 4-day rally on Tuesday, climbing 1% to 1358. Technically, the index looks upbeat after the close above the 55-day moving average. The April lows were also breached on an intraday and closing basis.
The June bottom appears as an inverted head-and-shoulders pattern. The measured target is at 1400.
USD/CAD (inverted) is the best correlate this year to US stocks at 0.789 followed by NZDJPY. In the past two months, the correlation has been extremely high. The strength in stocks implies a test of parity in the coming days, and perhaps lower.