- The dollar ETf UUP and Dollar index always have an inverse correlation with the broad market stock prices i.e. Dollar goes Up , stock prices go DOWN and vise verse. The above is a chart clearly depicting the correlation between Dollar ETF UUP and S & P 500 ETF SPY .
- Let us analyse the Dollar ETF UUP closely
Point and Figure Analysis of the Dollar INDEX :
- The Dollar index Point and figure chart has started the UPTREND following the blue colored up trendline.
- It has crossed beyond its long standing down trendline (colored in red)
- It's currently trading at 88 and has a BULLISH PRICE OBJECTIVE of 115 .
- If dollar continues higher at this pace (looks like it will ) then all the commodities like Copper, Metals , Coal,Crude oil will suffer an immense downtrend and hence drag the entire stock market down .
- I do not intend to say that this is the end of stock market ; But just giving you all a heads up to watch all your portfolios which are commodity rich , like all Oil stocks, Agricultural stocks, metal stocks...etc..