Wednesday, October 1, 2014

10-1-2014 $SPX $USDX - The Buck Stops Here

Update on the running SPX chart. Big red candle today. See bears premature ejaculating all over the interwebs. A sorry sight.

As you can see the US Dollar broke above a long term downtrend line with some decisiveness recently.  Today the dollar had a red doji inside day, while the equity markets sold off hard.  In general, equity markets have held up extremely well under the pressure of a strengthening dollar, making new all time highs in most indexes during the dollars move up.  This is indicative of the plausibility of a secular bull market move ala the 90's - which for a variety of reasons is supported fundamentally in the world at this time.

Thoughts? Arguments? Questions? Want to know what the fundamental reasons I think a 90's style market is here, is now?  There is a comment section you know.

Have a great rest of the week!  Mind the purple line.