From the Desk of Alfonso Depablos @Alfcharts
The negative correlation between equities and the dollar remains intact, representing a fundamental piece of the current intermarket puzzle.
When the dollar strengthens, stocks tend to fall under selling pressure. On the flip side, stocks often enjoy strong bull runs when the dollar trends lower.
That’s been the case for some time now.
When we zoom in on this relationship, it becomes clear as day why the dollar should be on the mind of every stock market investor right now.
Below is a 15-minute chart of the S&P 500 Futures and the US Dollar Index over the last week.