Yesterday just before FOMC notes came out I was watching an ascending triangle pattern in DXY form, test and hit profit target.
I noticed that the S&P 500 was moving in perfect negative correlation to DXY during FOMC.
So I decided to measure the correlation between the two and found significant negative correlation on the daily.
The weekly chart shows strong negative correlation during times of market turmoil.
2022, March 2020, Early and Late 2018, 2015, 2016
If there is a significant selloff in markets, I expect the dollar to continue to strengthen into a weakening economy.
Same can be said for a selloff in DXY one might anticipate a rally in markets.
Thanks for Reading.
I noticed that the S&P 500 was moving in perfect negative correlation to DXY during FOMC.
So I decided to measure the correlation between the two and found significant negative correlation on the daily.
The weekly chart shows strong negative correlation during times of market turmoil.
2022, March 2020, Early and Late 2018, 2015, 2016
If there is a significant selloff in markets, I expect the dollar to continue to strengthen into a weakening economy.
Same can be said for a selloff in DXY one might anticipate a rally in markets.
Thanks for Reading.
