The dollar is coming into the previous demand zone. Last time it came into this zone there was a massive rejection wick kind of price action. A very real possibility that we see similar kind of price action this time again on the dollar. Moreover, the 200-day SMA sits just around this zone as well, which should prompt lots of institutional and retail traders to buy off this level.
So what this mean for the stock market, especially S&P500? If the dollar starts strengthening from this level, we can see SPY move down aggressively. SPY is also fast approaching the 200-day SMA line, and the previous supply zone. Coincidental? I think not. All markets are connected. Something big is coming.
So what this mean for the stock market, especially S&P500? If the dollar starts strengthening from this level, we can see SPY move down aggressively. SPY is also fast approaching the 200-day SMA line, and the previous supply zone. Coincidental? I think not. All markets are connected. Something big is coming.