Going off the commentary from the DXY - This is ES divided by the DXY to provide a 24/7 picture of S&P futures and DXY.
Hypothetically, this chart should help dictate when the value of the market is increasing relative to the USD.
The derivative should indicate when the market starts slowing down and eventually turns.
In hindsight, the market was mostly flat, with a bearish divergence from December until the crash in March.
As of now, the RSI is trending up with price and relative to the DXY the index is breaking out pretty decisively. First of long term diagonal trend lines, second of the all time high relative value of the SP and DXY. In past instances the ES/DXY traded flat, prior to breaking down.
Hence, it seems relative to the dollar, the S&P is showing a strength and should continue towards the blowoff top scenario, below.
Hypothetically, this chart should help dictate when the value of the market is increasing relative to the USD.
The derivative should indicate when the market starts slowing down and eventually turns.
In hindsight, the market was mostly flat, with a bearish divergence from December until the crash in March.
As of now, the RSI is trending up with price and relative to the DXY the index is breaking out pretty decisively. First of long term diagonal trend lines, second of the all time high relative value of the SP and DXY. In past instances the ES/DXY traded flat, prior to breaking down.
Hence, it seems relative to the dollar, the S&P is showing a strength and should continue towards the blowoff top scenario, below.
