FOREX Alert: U.S. Dollar Algorithm Back On

Over the past year, the obvious algorithmic trade has been: When the dollar rises, sell the indices. That strategy decoupled in yesterday's session, as the U.S. dollar put in strong gains while market indices surged forward. The original algorithm is seemingly back today, as any gain in the U.S. dollar is met with a simultaneous selloff in major indices across the board. The EUR/USD is currently down 1.2% at $1.43406, while the SPX is currently down 1.2% at 1274.57. The S&P 500 (

) hit its intraday low of 1268.28 at 1:45pm, the exact same time the EUR/USD hit its intraday low. If you do not use futures, compare the SPDR S&P 500

and the PowerShares DB US Dollar Index Bullish

. The SPDR S&P 500 hit its intraday low at 1:47pm, the same time the PowerShares US Dollar Index Bullish hit its intraday high. Looks like the market is back to business as usual.