This Chart Continues To Dominate Every Market Move
Yesterday's late afternoon rally was being accredited to the Chinese buying Italian debt. Whether or not this is true remains to be seen. What is true and did happen was the late afternoon decline in the U.S. Dollar Index. As we all know by now, when the U.S. Dollar Index dips the major stock market indexes flip. Everything inflated higher yesterday afternoon as the U.S. Dollar Index declined into the closing bell. Traders and investors must continue to follow the U.S. Dollar Index very closely once the opening bell rings at the New York Stock Exchange each and everyday.
The energy and commodity sectors are most sensitive to the U.S. Dollar Index. Stocks such as Southern Copper Corp.(NYSE:SCCO), Nucor Corp.(NYSE:NUE), and U.S. Steel Corp.(NYSE:X) will usually trade inverse to the U.S. Dollar Index. This morning, all of these stocks are just stalling after advancing higher yesterday afternoon. Should the U.S. Dollar Index begin to move higher this morning it would be prudent to expect these stocks to pullback or decline intra-day. The U.S. Dollar Index futures (DX U1) will have some short term intra-day support around the $$76.80 level.