The Falling U.S. Dollar Index Comes To The Rescue Again
Once again, the decline in the U.S. Dollar Index futures (DX Z1) has saved the major stock indexes from another sharp decline. Traders can easily see that the U.S. Dollar Index futures topped out at 10:00 am EST. At the same time, the major stock market indexes found a low and have rebounded higher. The SPDR Dow Jones Industrial Average (NYSE:DIA) traded as low as $118.17 at 10:00 am EST, however, it is now trading at $119.32 since the U.S. Dollar Index declined. These are big intra-day moves for the markets. Traders can watch for some short term intra-day resistance for the DIA around the $119.65 area.
Many of the leading energy stocks have bounced sharply higher since the U.S. Dollar Index declined. Leading energy stocks such as ConocoPhillips (NYSE:COP), Chevron Corp (NYSE:CVX), and Exxon Mobil Corp (NYSE:XOM) are just a few leading stocks that will usually surge higher when the U.S. Dollar Index declines.