A good deal of the time the U.S. Dollar and the S&P 500 move in opposite directions, acting like the are on a “Teeter Totter!”
They haven’t exactly moved in opposite directions over the past 7 months as the 500 index is up 22% and the U.S. Dollar is up 1.7%-
CLICK ON CHART TO ENLARGE
Trading stocks, based upon what the U.S. Dollars action will be, has been a disappointing strategy over the past 7 months due to a lack of inverse correlation between the Dollar and S&P 500. Now the Dollar is facing a resistance zone for the third time, since last 2010.
It wouldn’t surprise me a bit to see the “Teeter Totter/Non-Correlation” effect come back if enough buyers get together and push the Dollar past the resistance zone highlighted above!
