There’s really nothing else to talk about other than the US dollar. A convergence of various factors has sent the greenback soaring against the basket all quarter long and it’s had a huge impact on the stock market (not a good one). The higher the US dollar, the worse things get for commodity-related stocks (oil is priced in dollars globally) and the higher the potential for multi-nationals in every other industry to take currency-related hits to their future earnings.
We may have a bit of good news on the dollar front, however, as it’s right now coming into technical overhead resistance based on a long-term trendline. In addition, dollar bull sentiment is screaming-hot on the heels of its sixth best quarterly performance ever.
Here’s my friend Chris Kimble’s chart illustrating the potential for a stop (at least a pause) at these levels. As always, you may click to embiggen…