From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
The market has been a choppy mess for months.
Unless you’ve been stuck under a rock or at the beach all summer, this is old news. And we’ve admittedly been a bit obnoxious when it comes to rehashing this theme. But usually when we find ourselves harping on something, it’s because it’s a big deal.
Our own behavior can be fantastic information, and it’s become a part of our process to pay special attention whenever we begin to repeat ourselves a lot.
This week is no different, as the US Dollar Index $DXY provides another example of the market’s sloppy state of affairs.
Just when we thought we might finally have some decisive price action in the Dollar, Friday’s attempted breakout followed by Monday’s weakness is casting some serious doubts.
Was last week’s breakout above the March pivot highs valid?
Or was it just another failed move to add to the market’s growing list of whipsaws and fake-outs?
Let’s take a closer look at the US Dollar Index to analyze recent price action and recap what the potential outcome of each scenario could mean for the broader market.