If You Need A Rally Drop The Dollar
This morning the U.S. Dollar Index was in rally mode. As the dollar rallied higher the major stock indexes in the United States sold off sharply. Around 11:00 when the U.S. Dollar Index traded around the $79.10 area it reversed and sold off. As we all know by now when the dollar dips the market flips. The Dow Jones Industrial Average has reversed and early 80.00 point decline and is now trading in positive territory. Nothing has changed when it comes to the dollar. Please see the early blog post titled, 'U.S. Dollar Index Gets A Bid' for more on the early action this morning. Please notice the identical inverse relationship in the dollar and the Dow Jones Industrial Average in the chart below.