Figure 1 shows a weekly chart of the SP500. The price bars marked in red are
those times when our Dollar model (see
this article) suggests an upward trend in the greenback.
Figure 1 SP500/ weekly
Since 2000, upward trends in the dollar have generally resulted in poor stock
market performance. There have been upward, tradeable spikes in the SP500
while the Dollar is bullish. However, 5 out of 7 bullish trends in the Dollar
Index over the past 10 years occurred during times of significant market (SP500)
downdrafts. As a reminder, the Dollar model averages about 7 months per bullish
signal, which is plenty of time for the SP500 to thrust up and roll over once
again.
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of The Technical Take blog. His commentary on the financial markets
is based upon information thought to be reliable and is not meant as investment
advice. Under no circumstances does the information in his columns represent
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all positions are fully disclosed at http://thetechnicaltakedotcom.blogspot.com/.
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