Once again, the major stock indexes reversed an early decline. The rally in the S&P 500 Index came as the U.S. Dollar Index futures (DX Z1) plummeted around the noon hour. The inverse relationship between the U.S. Dollar Index and the major stock indexes continues to occur every single trading day. As long as the U.S. Dollar remains weak the major stock indexes will inflate and trade higher. In essence, every trade is a trade on the U.S. Dollar Index at this time.
The rumors out of Europe can be ignored. The U.S. Dollar Index chart is the only chart that needs to be followed. Tomorrow is also options expiration and that will usually make for a lot of rumors leading up to the Friday expiration date. As we say, this week is time to expect the unexpected.
Nicholas Santiago
InTheMoneyStocks.com
