Typically, a strong dollar would suggest a defensive tone for risk assets. But not this time.
Despite the dollar's impressive run, equities are holding their ground and showing serious resilience. Just last week, the S&P 500 closed at all-time highs.
And when you dig into the chart, DXY is still stuck in the middle of a range
The real takeaway here is that while the dollar has made a big move higher, stocks continue to shrug it off, refusing to fold under pressure.
As long as this range is unresolved, I don't expect the dollar to be much of a tailwind or a headwind for the stock market.
A breakdown would be good for stocks. A breakout would be bad.
Do you agree?
Let me know what do you think!
Alfonso
This week, Kenny Glick opened his live trading room to the public, showing how he trades the day's top movers.
Today's big winner was Boeing $BA. If you want to see what a full day is really like, check out the replay.
