Dollar Falls Off Highs Giving Market Solid Lift
The Dollar spiked higher for the third straight day with one small difference. Today, the Dollar pulled back into lunch, giving the markets a solid pop. The Dollar trades inversely to the markets and anytime the Dollar falls, the markets will move higher. Note the chart below. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) hit a high today of $21.55 before falling sharply in the last hour to $21.46. This fall coincided perfectly with the SPDR S&P 500 ETF (NYSE:SPY) pop into the 200 moving average on the intra day ten minute chart.
The markets are having a normal Monday float higher. After a weekend, especially one with a holiday like Mothers Day, the markets have a tendency to have light volume and also float higher. Commodities are popping today with oil, gold and silver all surging. Key stocks leading the up move in the markets are the beaten down commodity plays like Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX).