SPX LOOKS FOR NEW HIGHS
The S&P 500 is at a point of decision. But it's not the one you are expecting.
Earlier, I wrote about the impacts we are seeing with DXY right now, which you can read here. When the value of $USD changes, the buying power comparative to it also changes. Stocks will eventually return to normal, so now there is a great opportunity for international buyers to swoop in and buy more than the previously could - all because the $USD is very weak right now.
So how do we normalize the SPX chart to account for this? We need to incorporate the DXY ratio:
Suddenly, we are no longer looking at the S&P as something that has broken new ground, but is still in the recovery phase. It is, also, at a critical moment. Can the recent positive news result in a breakout here? Perhaps. Though, as we have discussed previously - there are some clear economic issues that a being clearly ignored. Only time will tell how this plays out.
The S&P 500 is at a point of decision. But it's not the one you are expecting.
Earlier, I wrote about the impacts we are seeing with DXY right now, which you can read here. When the value of $USD changes, the buying power comparative to it also changes. Stocks will eventually return to normal, so now there is a great opportunity for international buyers to swoop in and buy more than the previously could - all because the $USD is very weak right now.
So how do we normalize the SPX chart to account for this? We need to incorporate the DXY ratio:
Suddenly, we are no longer looking at the S&P as something that has broken new ground, but is still in the recovery phase. It is, also, at a critical moment. Can the recent positive news result in a breakout here? Perhaps. Though, as we have discussed previously - there are some clear economic issues that a being clearly ignored. Only time will tell how this plays out.
