This Chart Will Tell The Tale Of The Tape
Right now the recent stock market rally has occurred on the back of the falling U.S. Dollar Index. Just look at the pre-market activity how the S&P 500 Index futures have come off their lows ahead of the opening bell as the U.S. Dollar Index declined by nearly 0.30 cents from the 7:00 am EST highs. At that time the U.S. Dollar Index reached a high of $80.15. As of 9:18 am EST the U.S. Dollar Index is now trading at $79.85. It's the same old game as you may know. When the dollar declines the stock market indexes will simply inflate and trade higher. The opposite is true when the U.S. Dollar Index trades higher or catches a bid the major stock indexes decline or deflate lower. Can the U.S. Dollar continue to drop so that the major stock averages will inflate higher again? We shall see.