Bullish Divergences Amid Sleeping Headwinds 🌤️ The Morning Print

Good morning! 

Two key market headwinds are hinting at bullish momentum divergences.

Could the VIX and the U.S. Dollar soon weigh on risk assets?

Here's the setup.

Both volatility and the dollar peaked in late March, right before tech stocks staged their historic run.

Now, with the rally looking a bit stretched, the VIX and DXY have the potential to shake things up in the near term.

Price has made lower lows, yet RSI (momentum) has formed higher lows, a classic signal that buying pressure has been quietly building beneath the surface.

For the VIX, a move above 20 would confirm upward pressure, while for DXY, reclaiming its pivot highs near 99 would indicate the dollar is regaining strength.

If these headwinds awaken, the rally could face some serious turbulence.