After a sharp breakdown a couple of weeks ago, the dollar is catching a bid — and now it's threatening to reclaim a key former support level near 100.
That’s my line in the sand.
This renewed strength in the dollar isn’t something I’m brushing off.
While the inverse correlation between the dollar and equities hasn’t been as strong this cycle, that relationship tends to fade in and out, and I think it's still prudent to respect it.
As things stand now, it wouldn't surprise me if a stronger dollar starts to act as a headwind for stocks again.
We’ve had a solid run in equities since April, but I feel we’re due for a healthy pause at the index level. Some digestion. Some rotation. A constructive corrective wave.
The timing of the dollar’s rebound makes sense in that context. It’s probably not a coincidence.
If DXY keeps climbing, especially above 100, I’ll be watching how equities respond — even if the correlation hasn’t been crystal clear lately.
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