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Even though the Dollar and the 500 index go their separate ways most of the time, during a very critical time in the financial markets, they correlated very highly for almost a year. Know when? Mid-2007 to mid-2008. This took place after the markets Double topped at (1) and broke to the downside from a rising wedge.
Too early to tell, yet the 500 index may have double topped at (2), while breaking support at (3), all the while the Dollar is falling, almost just like the action in 2007! I am never one to believe that any given year will repeat another, yet these are some very interesting patterns that are looking/acting like a prior key event.
Are these two hinting at something from our past? If so, the “Look Alikes, Domino’s and Slipper Slides” charts become very important! (see post here)