USD and S&P 500

Big pop means no drop? This was what happended on last Fri: USD a big pop up. The $USD breakout its 50dma and downtrend line. rose 1.28 or 1.7%



So what's the deal with the dollar? Are the Japanese in the process of devaluing the Yen and strengthening the dollar? The YEN (FXY) dropped a whopping 2.54% as the US Dollar climbed 1.44%. The euro (FXE) dropped 1.52%.


The markets have been moving opposite to the US dollar, but last Friday the S&P500 showed resilience when the dollar rocketed up to touch the 50 day average. Perhaps traders are holding on anticipating a Santa Claus rally.