Is the U.S. "decoupling" from the European crisis?

Originally published at Stockhouse.com.

xpect the decoupling myth to gain more credence in the near term as long as U.S. equity markets show any sign of strength.

Selling pressure earlier in the week gave way to strong demand for equities as concerns over the European debt crisis have been moved to the backburner. Investors have instead been focusing on the improved U.S. economic and employment picture.

In an article by Reuters reporter Edward Krudy earlier this week there was a significant quote worth mentioning. The quote is from Ryan Larson, head of equity trading at RBC Global Asset Management. Larson said, “The U.S. appears to be slowly, slowly in the early stages of a decoupling from the euro zone.”

There's no denying that the U.S. stock market is showing technical resilience on a short-term basis, and that's mainly due to the fact that two dominant interim weekly Kress cycles are still in their peaking phase. Strong internal momentum as reflected in the NYSE HILMO (Hi-Lo Momentum) indicators shown below is another driving force behind this rally. It's also a reason why I think it's premature to sell this rally short as some analysts are suggesting. But Mr. Larson's final statement to the effect that the U.S. appears to be “decoupling” from the euro zone is a theme that needs to be addressed.

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