Intra-day Dollar Dip Helps To Inflate Indexes

This afternoon, the major stock indexes have rallied sharply higher off the morning lows. The major stock indexes are still trading in negative territory on the session, however, if the U.S. Dollar Index continues to decline many leading stocks could continue to inflate and trade higher throughout the session. Despite all the problems in the European Union, it is the U.S. Dollar Index that dominates the market movement. Stock indexes simply trade inverse to the U.S. Dollar Index. Short term traders should watch for intra-day support on the U.S. Dollar Index futures around the $75.70 level. If the U.S. Dollar Index futures bounce before that support area it would be prudent to expect another stock market sell off. The SPDR S&P 500 TrustSPY has rallied off the lows of the day by nearly $1.00 to $130.57 a share. Similar moves higher were made in the Powershares QQQ TrustQQQ, and the SPDR Dow Jones Industrial Average TrustDIA. Traders should remember, as easily as these indexes rallied on a U.S. Dollar Index decline they can sell off just as fast on a U.S. Dollar Index bounce. Nicholas Santiago InTheMoneyStocks.com