Updating the series on the DXY - Finally broke out of the wedge, but now needs to retest. RSI broke out as well, will need to retest as well.
This leads me to believe the stock market is about to form a bull trap above all time highs, while the DXY retests, before it takes off and takes the market with it.
The moment it breaks the light blue dashed diagonal, it will also need to retest it which would allow for a perfect deadcat bounce.
This goes with the bond market starting to sell off, leading to higher yields and a stronger dollar.
Regardless of the way it plays out, the charts are hinting the dollar is going to go much higher in the near future.
Sidenote: All indicators and lines are for the DXY, SPX added for reference. Although that SPX chart lined up perfectly with the DXY bottom, it'd be ironic if the top was also a previous dxy top - added the two lines and they continue to match up perfectly.
Previous idea:
This leads me to believe the stock market is about to form a bull trap above all time highs, while the DXY retests, before it takes off and takes the market with it.
The moment it breaks the light blue dashed diagonal, it will also need to retest it which would allow for a perfect deadcat bounce.
This goes with the bond market starting to sell off, leading to higher yields and a stronger dollar.
Regardless of the way it plays out, the charts are hinting the dollar is going to go much higher in the near future.
Sidenote: All indicators and lines are for the DXY, SPX added for reference. Although that SPX chart lined up perfectly with the DXY bottom, it'd be ironic if the top was also a previous dxy top - added the two lines and they continue to match up perfectly.
Previous idea:
