One of the most important charts out there is the U.S. Dollar Index chart. When this chart declines the major stock market indexes seem to catch a bid higher and inflate. The opposite is true when the dollar rallies the major stock indexes will decline and deflate. This chart must be watched by all traders at this time. Today the S&P 500 Index declined sharply during the first 30 minutes of the trading day only to catch a major bounce off of an important support level. While the support area certainly helped it was the decline in the U.S. Dollar Index that was the true catalyst for the intra-day bounce.
