More Of The Same Today
This morning the major stock market indexes are trading slightly lower. This type of action usually takes place after the dramatic point rally that the markets made last Friday when the Dow Jones Industrial Average closed higher by 180.00 points. Generally, the next trading day will be a flat to slightly negative trading session and that is exactly what we are experiencing today.
It is very important to remember that the stock market trades inverse to the U.S Dollar Index. As the Dollar rallies the stock market indexes deflate or trade lower. The opposite is true when the U.S. Dollar Index declines the major stock market indexes will inflate and trade higher. Therefore, the action in the U.S. Dollar Index dictates where this market is going to trade. This morning the U.S. Dollar Index is trading slightly higher by 0.15 cents to $79.45. Please note that the major stock market indexes are all trading slightly lower this morning. Should the dollar decline you can expect the stock market indexes to rally higher. It really is just more of the same.