Like most of the major stock indexes, the Euro Dollar topped in May 2011 and has been in a steady decline since.
Unlike the major stock indexes, the Euro Dollar peaked in October and has fallen hard since. (Most major stock indexes remain well above their October lows of 2011. We'll see how long that lasts.) Click here for downgrade details.
The decline has worked in concert with the rise in the US Dollar over the same period. European debt is not going away in spite of the government's solution to use debt to get rid of debt. Fancy that.
Why is this important? Because long term market trends act like a crystal ball seeing into the future. Markets usually lead the economy. If we see a weaker Euro Dollar, thereby a stronger US Dollar, it is likely that we will see stock markets fall fast and very soon.