DXY looks to be in a wave 2 of wave 3 of wave 5 down which is bullish for stocks. But it has come up dangerously close to an invalidation level where wave 2 would come past the start of wave 1. If this happens then that means another count is more likely in play which is that DXY will continue going up. As we know, the stock market is typically inversely correlated to the USD. If the dollar continues up past the red line that could be the catalyst that the market has been waiting for. Otherwise, hopefully we will reverse at the 2.618 fib extension level for a wave 2 and come back down, which will mean a green week for stocks after this weekend.
