After Reversal Yesterday, Markets Rip Higher On Dollar Drop
The markets dropped sharply yesterday at the open only to recover and trade flat to higher until 3pm ET. At that time, the markets flushed sharply back to the lows of the day. This was an ugly reversal, one that could have been significant. However, the powers that be had a different idea, one that did not involve a pull back in the markets. Through a crushing of the U.S. Dollar, the markets jumped higher today, negating the drop yesterday. This now causes the charts to show a neutral to bullish sign in the short term assuming this rally holds on this Friday.
The SPDR S&P 500 ETF (NYSE:SPY) is higher by $2.15 to $114.65 (+1.91%). The PowerShares DB US Dollar Index Bullish (NYSE:UUP) is lower by $0.23 to $22.98 (-0.99%). This continues to show the inverse relationship the markets have with the Dollar. Dollar down, markets up. It is as simple as that and allows in many cases for the Federal Reserve which has a print money philosophy to continue to prop the markets up.
The strongest stocks today are Amazon.com, Inc. (NASDAQ:AMZN), which got upgraded today and International Business Machines Corp. (NYSE:IBM) which may have broken out of its $122.00 to $132.00 range. Caterpillar Inc. (NYSE:CAT) is also having a monster day up 3.66%.
Chief Market Strategist