As Inverse As It Can Be
Whenever the U.S. Dollar Index declines the major stock market indexes will inflate and advance higher. The chart below clearly defines this inverse relationship in real time. The U.S. Dollar Index has now declined lower by 17.0 percent since June 7, 2010 when it traded as high as $88.70 per contract. This morning the U.S. Dollar Index is trading around $73.85. There is the stock market rally for you. Dilute the currency and inflate asset prices. We can only wonder how long this can continue before the inflation rally ends?