$DXY Dollar Index is below its 200-day simple moving average for the first time in 379 trading days pic.twitter.com/RYOFGJ8Wxc
— John Kicklighter (@JohnKicklighter) December 1, 2022
Today’s Chart of the Day was shared by John Kicklighter (@JohnKicklighter). It’s a daily candlestick chart of the US Dollar Index year-to-date. John points out that the Dollar Index just broke below its 200-day moving average today. It spent 379 trading days above its 200-day moving average, marking the longest streak on record. As we know, Dollar strength has been putting pressure on stocks and risk assets all year. This is the breakdown that the bulls have been waiting for. Stocks will likely continue to rebound if the Dollar continues to weaken.