The following video provides technical analysis of the US stock market, US Dollar, Euro, and Treasury Bonds. Silver or Gold level access initially required.
- Friday’s breakout in the US Dollar has been confirmed with additional upside today
- As there has been an tight inverse correlation between the US Dollar & the stock market for many months, should the recent breakout in the Dollar lead to a new bullish trend, that would most likely result in a correction in the stock market
- Treasury bonds continue to selloff since the recent breakdowns in the 10-year & 30-year bonds (breakdown in bond prices, breakout in yields) which does not help to support the case for a stock market correction at this time. However, the correlation between the stock market & Treasury bonds has been more of an “on & off” correlation than has that between the stock market & the US Dollar
Bottom line: With the recent breakout in the US Dollar increasing the odds for a rally in the coming days to weeks+, the odds for a correction in the stock market have significantly increased although we don’t have any sell signals on the major stock indices at this time.