A $DXY Update, Could Top Out at Any Moment, Or Extend

Review my last post on the $DXY which I made here. That called for higher highs, a bit of which we’ve gotten, but: I want to point out that we may also be topping here as well. The count below shows the box where there is a good fib relationship between green C and green A. It’s about where we would like to see a correction complete, somewhere near equal legs.

My last count was looking for some serious acceleration, but we’re stalling. We can count this spot as the orange 4, after which we may see another push higher, but given where we’re at, we may just as well squish the numbers all in there together.

I know it’s not helpful to say “we could go up or we could go down.” But my main point is to communicate that contrary to the prior post, we may not see further upside from here. This would take significant pressure off of equities.

DXY


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2 thoughts on “A $DXY Update, Could Top Out at Any Moment, Or Extend”

  1. Sort of. The correlation comes and goes, but over the last year, a weakening $DXY tends to give strength to big tech, which obviously pushes the S&P because of their market caps.

    It’s not a perfect correlation, but generally, a rising dollar makes US equities lethargic.

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