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For the majority of the time from 2003 to 2011, the U.S. Dollar and the S&P 500 pretty much moved in opposite directions (Low Correlation Pink Shading). For the prior ten years (1993 to 2003 Green shading) the opposite took place, Dollar and SPY were highly correlated.
Since Mid-2011, the US$ and SPY have had a high degree of correlation, both moving higher for almost two years!
The US$ now faces a 8-year resistance line at (1) in the chart above, created a large bearish wick last month at the line and recently 77% of investors were bullish the US$.
Could a decline in the US$ pull SPY down with it? Possible if the last two years trend continues!
Stay tuned and what the US$ and Yen!!!