The S&P 500 Index has rallied back to the positive side once the U.S. Dollar Index started to decline intra-day. At this time the stock market only cares about the weak dollar. The stock market indexes inflate higher on every U.S. Dollar Index decline. However, should the U.S. Dollar Index catch a bounce or begin to rally the stock market will likely stall out or even begin to decline. As long as the Federal Reserve continues to devalue the U.S. Dollar Index the stock market has been trading higher at this time.
It is important to note that many commodity stocks have surged much higher than the U.S. Dollar Index has declined. When commodities make this type of a move higher against the U.S. Dollar this is certainly inflation. Many U.S. consumers are now getting very concerned over the high prices for food and energy, especially, as their purchasing power in the U.S. Dollar Index declines on a daily basis.
