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.
The USDX has not retested the lows of April-May 2008 as yet.
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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