This index shows the strength of the dollar. In general, if this index goes up, the direct impact of this can be seen in two different settings:
1.US dollar is increasing in the Forex pairs. 2.Equities and indices tend to fall (not all the time).
What is the situation now? Currently we are very close to the resistance, where I believe the current upward movement will end. I am looking at the levels 96.34 – 96.47. I believe that the change of the trend can come somewhere around these numbers and can be followed by downwards movement. It can even be a TOP of the overall structure.
Looking at this index, we can see that we are in an ascending triangle. This is usually followed by a price increase. Yet, we are not currently rising with a strong sentiment. If we however combine the information with what DXY says, I think that S&0P 500 will finally break the upward resistance right at the moment when DXY descends to correction. This would make a lot of sense and also might be what the whales are waiting for.
As I mentioned, I believe that S&P 500 will go the opposite way compared to DXY, meaning that it should rise. S&P 500 even tried to do so this morning, however, this was rejected. Breaking the resistance is, however, in my view only a matter of time.