This major stock market indexes are trading virtually inverse to the U.S. Dollar Index today. As we all know by now when the dollar is trading higher the stock market indexes will usually deflate and trade lower. That is certainly the case today as most leading commodity stocks are under pressure. AK Steel Holding Corp.(NYSE:AKS), Southern Copper Corp.(NYSE:SCCO), and BHP Billiton Ltd.(NYSE:BHP), are all trading lower as the U.S. Dollar Index finally catches a bid higher today.
The volume in this stock market is extremely light which will usually help to keep this market indexes from trading lower. Today that is certainly not the case and can be a small change in character. Trading volume has dropped off tremendously since the late August stock market rally began. Generally, light volume will often favor the upside in the stock indexes. Remember the old market adage, “never short a dull market”. Despite the small decline today in the market indexes this is still a very dull market. Please keep in mind that this market’s lead dance partner is the U.S. Dollar index.
