Today’s Chart of the Day was shared on Twitter by Nautilus Research (@NautilusCap). It's a chart of the US Dollar Index over the past nine years. The Dollar Index bounced off long-term support in January and has been mean reverting higher ever since. It's currently at a four-month high and testing its downward sloping 200-day moving average. How the Dollar behaves here will likely have macro implications. If the Dollar gets rejected at the 200-day and reverses lower, it would likely be a nice tailwind for things like Large-Caps, Commodities, and Emerging Markets. However, if the Dollar continues higher, it would likely put pressure on these areas of the market.
Chart of the Day - Wednesday, March 24th, 2021
March 24, 2021
