Tuesday, November 24, 2009

S&P 500 vs. USD

Take a closer look at the chart below.



The inverse correlation we have seen since the '''bubble'' burst in the first quarter of 2008 continues.
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The USDX has not retested the lows of April-May 2008 as yet.
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At the same time it remains to be see how long the equity market rally can continue, without any significant improvement in fundamentals.
Question is - When will we get to the turning point?
ie: The S&P 500 heads downwards and the USD stages a recovery.

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