Chart of the Day - Wednesday, July 12, 2023

Today’s Chart of the Day was shared by Barchart (@Barchart). Today was the worst day for the US Dollar Index ($DXY) since January, as $DXY slid -1.07% to a 15-month low. Stocks struggled last year as the $DXY trended higher, and that inverse relationship remains in place. It's no surprise that Stocks have trended higher since the Dollar peaked last Fall. This level, around $101-$103, has been a major inflection point for $DXY in recent years, and $DXY has significant downside risk if it's below $100. Stocks will likely benefit if the Dollar continues to deteriorate in the coming months.