DXY is imho the most important chart these days, because if you really think about it, all assets are compared to USD and USD rules the world. When you sell a stock that you own, you get dollars - if there is panic sell off, everybody is selling and the "price" of dollar is going up. We are currently extremely oversold on DXY, some stocks are on all time highs, put/call ratio is also in extremes, so if you put all pieces together, I think there is huge probability, that we will see some bigger move on DXY to the upside and bigger move to the downside on stocks. Someone can argue, that it makes perfect sense, that USD is getting weaker, because FED is printing bunch of new USD, but market usually works totally opposite and usually good news are released on tops and bad news are on the bottoms. I also think, this move will be very fast and impulse and we can see like -10% drop on american indices in one day, because volatility of SPX is also really interesting, ready for big move.
So right now, for me as a day trader, there is no trading environment on forex, I took my last USD/JPY short today and I will bet on dollar sky rocketing, as soon as I see finally some reversal signs. However I could be wrong and dollar may continue in downtrend, that´s why I am sticking to "trend is your friend" and although I will probably miss that first huge move, at least I won´t be losing money by catching tops/bottoms.
So right now, for me as a day trader, there is no trading environment on forex, I took my last USD/JPY short today and I will bet on dollar sky rocketing, as soon as I see finally some reversal signs. However I could be wrong and dollar may continue in downtrend, that´s why I am sticking to "trend is your friend" and although I will probably miss that first huge move, at least I won´t be losing money by catching tops/bottoms.