Hey guys,

Ouch. There goes stocks:

SPX Daily

We could feel it coming and while that previous level of resistance tried to act as support, as soon as the market opened the following day, it was CRUSHED.

But interestingly amongst all of this stock market carnage, take a look at the US Dollar Index:

DXY Daily

When markets are concerned about rising volatility, the US Dollar tends to do well. Especially against the risk currencies such as the Aussie or CAD.

But there seems to be a disconnect right now, with DXY actually pulling back while market volatility in stocks goes gangbusters and price is hammered to the downside.

I just love it when the textbook economic theories don’t work in reality. Market dynamics and the ability to make money off them has nothing to do with economics.

Nothing.

Peace ✌🏻.

Return from Stocks and the Dollar - Showing a Disconnect to forexbrokr's Web3 Blog