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Quantifying a Bottom in the Greenback
One way to quantify if a bottom is in for the U.S. Dollar is take a look at previous macro price patterns and see how the S&P 500 stock index – an asset class market and a proxy for the global economy — has called 4 out of the last 5 up-turns for the U.S. Dollar index over the past 3 years. When the S&P 500 gives a weekly bear shift of its short-term trend – an occurrence which includes both a trendline penetration on a closing basis and a weekly directional line shift, the dollar index generally rallies. The indication was 4 for 4 since the panic of 2008, but missed this March as a stock sell-off reversed ... (full story)
