FINANCIAL ICEBERG
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 TECHNICALS
US Dollar Index and SP500: A Stealth Move?
 July 20 2016 ​( From TradingView , CNN)
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The Situation

​

​​​​In these Greedy times (good to know that​​ the Fear and Greed Index 
​from CNN Money is coming from the Fear Zone three weeks ago to the 
​Extreme Greed Level now at 87). It is interesting to look the behavior 
​(correlation) ​of the US Dollar ​​(USD-DXY) ​and the Mighty ​SP500 Index.

​​​​As shown by the chart below, this correlation tells that the risks have 
​not ​started ​to be fully priced into the foreign exchange market yet in 
​terms of volatility: expect more volatility in the US Dollar and SP500 in the next few sessions...​​

​​​​​DXY/SP500 correlation getting near the -0.70 zone, ​indicating higher volatility ahead as history suggest... 
​(See first chart below - Middle Panel - Blue Area - Vertical Lines)
​
​​​The US Dollar Index just broke the resistance of a tiny rising wedge. (See first chart below - Top Panel - Ellipse) but most importantly getting near the Major Resistance Trendline that started back since December 2 2015 (See first chart below - Top Panel - Top Grey Trendline): Breaking that Resistance Trendline will increase tremendously  the Volatility of all US Financials Assets. 
​
For the SP500 index, it started a Bullish Trend from the post-Brexit panic on June 27 2016 to make a Breakout on July 8 2016 (from a Major Resistance Trendline that started back on May 20 2015)​.
​(See first chart below - Bottom Panel - Thick Grey Trendline) 
​
But very few of us realize that for a foreigner looking at the SP500 Index on a Macro Basis (so in US Dollar Index - DXY times the SP500 Index) we did not reach yet a new high ever (highest ever was November 30 2015) but​​ very close of that resistance trendline that started back in March 2015. 
​(See Second Chart Below - Top Grey Trendline - Ellipse)


​




US Dollar Index and SP500: A Stealth Move? $SPY, $SPX,  USDX  #Trading #dxy  #usdollar #SP500
#spy 




US Dollar Index - DXY ( Top Panel )​
CORRELATION​
DXY over SP500 Correlation ( Middle Panel )
​​SP500 Index ( Bottom Panel )
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Financialiceberg.com




US Dollar Index - DXY 
times
​​SP500 Index 
​(Daily Candles)
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Financialiceberg.com