Stocks and the Dollar - Showing a Disconnect
Hey guys,
Ouch. There goes stocks:
SPX Daily
We could feel it coming and while that previous level of resistance tried to act as support, as soon as the market opened the following day, it was CRUSHED.
But interestingly amongst all of this stock market carnage, take a look at the US Dollar Index:
DXY Daily
When markets are concerned about rising volatility, the US Dollar tends to do well. Especially against the risk currencies such as the Aussie or CAD.
But there seems to be a disconnect right now, with DXY actually pulling back while market volatility in stocks goes gangbusters and price is hammered to the downside.
I just love it when the textbook economic theories don’t work in reality. Market dynamics and the ability to make money off them has nothing to do with economics.
Nothing.
Peace ✌🏻.
@forexbrokr | Steemit Blog
Forex and Crypto Market Musings.
Twitter: @forexbrokr
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Brutal stuff, quite disappointed to see the crypto market follow the traditional markets tbh. Is what it is I guess.
Nice spot, been watching this as well. Massive tell when assets aren't doing 'what they are meant to'. Seems a lot of people are set up for more dollar strength but to me EURUSD has based. Gold also looks like it could rally hard. Right on the cusp I think. Had a look at it again today. These aren't signs USD is gonna rip against the majors.