Well, that dollar/stock market nastiness I keep harping on is playing itself out in today’s session as well:
Blue = S&P 500 Futures, White = Dollar Index:
And, yes, this is a longer-term problem facing the market. However, like I said yesterday (repeated below), don’t trade it short-term (unless of course you know what you’re doing):
“Note how the negative correlation I’ve been pointing to of late between the dollar and equities continues to play out this morning. Now, while I indeed see a strong dollar as a huge headwind against the prospects for making it out of this credit mess “alive”, this correlation over short time frames will definitely not hold nearly as tightly as it has the past few sessions. I.e., there, in my view, will definitely be many days where the two move in tandem.”