One of my favorite correlations.

The EEM (emerging markets index) vs the USDMXN is still one of my favorite correlations in the markets. Today, the EEM has bounced back to the 38% retracement and underside of a broken trend line. And based on the negative earnings we have seen in tech land, if the market looks to sell the EEM tomorrow that could make the USDMXN ripe for a bounce from the sub 20.0000 exchange rate. Keep in mind, Banxico delivered a surprise hike a few weeks ago. You know how far the MXN has rallied? Not much, as we are near those levels even after a recovery in EEM and stocks (SPX) at all time highs.