$DXY strength creates stock market bottoms

By timwest
Wizard
DXY strength creates stock market bottoms as earnings translation reduces earnings from overseas.

This simple graph will show you very simply how the DXY creates strong changes in earnings estimates, which in turn, cause market participants to change the value that they are placing on the market.

Combine DXY movement together with other indicators like VIX and PPC put/call ratios and SSKEW to find times when the market has already factored in the movement of the DXY.

The DXY is now sideways for 1 year, but has had a few waves of gains which have created downdrafts in the overall stock market.

See if you can do the analysis going back further to see other times the DXY impacted the SPY, DJI, QQQ.
Chart PatternsFundamental AnalysisTrend Analysis
timwest
Wizard
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