There is an invers correlation between the DJI and the USD-index. A stronger USD will be mirrowed in a falling DJI or at least a sideways consolidation (we saw a sideways consolidations in the DJI, when the USD rose in most part of 2005).
Looking back to October 2007, when the DJI topped out the USD continued to weaken into early March 2008 building up pressure, which when unleashed had the USD rising more than 24% in little over a year, while DJI fell 43.8% in the same duration of time.
Since early December 2009 we have seen the USD rise 5%, while DJI has continued to strengthen about 3%, but how long can this be going on? One of the two have to give away its gains. I'm sure the DJI will be the one caving into the pressure. It should just be a question of time.
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