Forget Europe, Watch This Chart
The U.S. Dollar Index futures (DX Z1) just fell off a cliff before the opening bell. When the U.S. Dollar Index declines the major stock indexes will inflate and trade higher. You see, nobody really cares about the poor earnings reaction to Amazon.com Inc (NASDAQ:AMZN), and Broadcom Corp (NASDAQ:BRCM) earnings. The markets are simply reacting to the action in the U.S. Dollar Index. When the U.S. Dollar Index declines the major stock indexes inflate higher, however, if the U.S. Dollar Index begins to rally this early stock market rally will fade quickly.
Yesterday, the U.S. Dollar Index traded higher and the popular Dow Jones Industrial Average (DJIA) ended lower by more than 200.0 points. Every trade is a trade on the U.S. Dollar Index at this time. Maybe one day you will hear about it in the media, however, you should not bet on it.