Another update on the US Dollar index and its negative correlation with major markets. DXY has moved back into an area of indecision with regards to recoveries occurring across markets:
Bitcoin, Gold, Dow Jones Industrial, Nasdaq are all negatively correlated with the Dollar Index, with few exceptions, over the last year or more.
Many of these are also at major decision areas or have recently faced major resistances to further recovery. It is possible recoveries could continue while the dollar index remains in this area of indecision, or they could also remain in an area of indecision as well.
The main point here is to pay attention to what DXY does next, and:
-- For as long as it continues to be negatively correlated with these other major markets, expect them to do the opposite when DXY finally breaches and remains above or below the blue box above.
-- They may also do the opposite for any major moves within the indecision area as long as negative correlation remains true.
This is another major update to the following post:
Plus a more recent major update related to Bitcoin:
And, if you'd like to use the correlation indicator I recently made for comparing multiple markets, you can find it here:
Please take a moment to hit the thumbs up button if you like this idea, and I'd love to hear your comments whether you agree or have an alternative view that you'd like to share.
Thank you for reading and best of luck with your analyses and trading plans!
-dudebruhwhoa
Bitcoin, Gold, Dow Jones Industrial, Nasdaq are all negatively correlated with the Dollar Index, with few exceptions, over the last year or more.
Many of these are also at major decision areas or have recently faced major resistances to further recovery. It is possible recoveries could continue while the dollar index remains in this area of indecision, or they could also remain in an area of indecision as well.
The main point here is to pay attention to what DXY does next, and:
-- For as long as it continues to be negatively correlated with these other major markets, expect them to do the opposite when DXY finally breaches and remains above or below the blue box above.
-- They may also do the opposite for any major moves within the indecision area as long as negative correlation remains true.
This is another major update to the following post:
Plus a more recent major update related to Bitcoin:
And, if you'd like to use the correlation indicator I recently made for comparing multiple markets, you can find it here:
Please take a moment to hit the thumbs up button if you like this idea, and I'd love to hear your comments whether you agree or have an alternative view that you'd like to share.
Thank you for reading and best of luck with your analyses and trading plans!
-dudebruhwhoa
Comment:
Lots of reasons why DXY could just be getting started on a move up. It could drop down to 89-90 first and provide more recovery for other markets, but if it continues up - we may be in for some deep corrections:
