Friday, January 20, 2012

Dollar Bull Trend Definitely Over and How This Might Impact Equities

Last week it was "likely" over. This week, I am going to say that the bull trend in the Dollar is "definitely" over. I am basing this observation on the fact that we are starting to see a clustering of negative divergence price bars. This doesn't necessarily mean a top and a reversal, but it most definitely means a significant slowing in price momentum.

Figure 1. Dollar Index/ weekly


Ok, this is all well and good, but what could this mean for equities? Great question. The Dollar

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