It’s been a while since my last post…had to spend a week away from the markets in an unrelated activity. Back at it now and nothing seems to have changed much. The push to 1,300 continues, and gold and silver have continued to correct.
The relationship between the US dollar and the markets continues to be on the front burner in terms of what I look at every day. They typically have an inverse relationship but at times will disconnect for a while.
What’s been odd lately is the lack of strength in metals and the equities as the US dollar has consistently eroded. Is this a sign?
I don’t know, but it sure seems heavy up here and a reversal higher on the dollar certainly won’t help equities. I’m looking for a swing low in the dollar to coincide with a possible test on the ES to 1,300. The normal relationship, if it obeys, would then mean flat or higher dollar, and a decline in the S&P.
As you can see, the weaker dollar lately has really had no impact on the ability to lift the markets.
Trade ’em well and trade the extremes!