Dollar Index

For those that get the paid members only newsletter, you would have noticed that I have been talking about the correlation between the US Dollar Index and the SP500 Equity Index.

We have seen the dollar index trend line being broken in the last couple of days. As you can see from the attached chart the correlation has been right on the money when it comes to marking major turning points in the Equity Indexes over the last 18 months.

Could this be the start of a major correction in the Equity Indexes or is it setting up for another move long out of the Flag pattern that exists on the Indexes. Only time will tell....