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US Dollar Index: At Major Crossroads?
 July 25 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 86).
It is interesting to look the behavior
​(correlation) ​of the US Dollar Index ​​(USD-DXY) ​and the SP500 Index.


The US Dollar Index broke on June 24 2016 the resistance of a Daily
Downtrend.
(See first chart below - Blue Trendline - Ellipse)  But most importantly,
we are​ getting near the Major Resistance Trendline that started back since December 2 2015
(See first chart below - Amber Trendline - Ellipse): Breaking that Resistance Trendline will increase tremendously the Volatility of all US Financials Assets as history suggest. Foreigners Market Participants behavior just add to the existing trend.

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 second chart below - Bottom Panel - Thick Grey Trendline - Ellipse)

​​​​​​As shown by the second chart below, the correlation between the US Dollar Index and the SP500 Index 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...​​ Especially with the US Dollar Index near a Major Resistance Trendline...

​​​​DXY/SP500 correlation getting near the +0.70 zone, ​indicating foreigners more involve into the US equity market: expect higher volatility ahead as history suggest... ​(See second chart below - Middle Panel - Blue Area)

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 finally reach on July 22 2016 a new high ever (prior highest ever was November 30 2015) and at the resistance trendline that started back in March 2015. As domestic investors had their breakout on July 8 (SP500 Index), foreigners are near making one on their own standard breakout (SP500 times DXY Index)...   ​(See Third Chart Below - Top Grey Trendline - Ellipse)





US Dollar Index: At Major Crossroads? $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 )

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