Short Term (de)correlation between S&P500 & Dollar Index
Updated
If we try to follow the trend of the Dollar Index and SP500 in the short term, we can see how as the dollar rises there is consequently a decline in the U.S. Index, but this event is not absolute, in fact there are many variables at play. At the moment, however, many of these variables appear to be in favor of this inversely proportional swing, at least in the short term.
If this analysis is correct, the next FED rate announcement should show further misalignment between the two sides, as the market should not be surprised by a 50bp rate hike (see chart below), so "wait & see"...
3 WEEK AGO
TODAY
DOLLAR INDEX ANALYSIS
(Click & Play on Chart below)
Trade with care! 👍 ...and if you think that my analysis is useful, please..."Like, Share and Comment" ...thank you! 💖
Cheers!
N.B.: Updates will follow below
If this analysis is correct, the next FED rate announcement should show further misalignment between the two sides, as the market should not be surprised by a 50bp rate hike (see chart below), so "wait & see"...
3 WEEK AGO
TODAY
DOLLAR INDEX ANALYSIS
(Click & Play on Chart below)
Trade with care! 👍 ...and if you think that my analysis is useful, please..."Like, Share and Comment" ...thank you! 💖
Cheers!
N.B.: Updates will follow below
Note
Short Term bearish setup on SP500
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