It was a great day for markets and the Euro, until the dreaded downgrade of Greece. More important than the downgrade is the fact that each tick of the Euro/USD appears to move the S&P 500 and other equity indicies.

Perhaps it is the new carry-trade or the fact that there is so much fear built in to these markets that a sneeze in the wrong direction releases the sell orders.

Take a look at today’s 10-minute chart of the Euro/USD and the S&P 500. An almost perfect correlation.