Dollar Ignores Rates As S&P Shows Exhaustion


  • Jason Goepfert

    Jason Goepfert

    Published: 2018-01-26 at 17:45:38 CDT

This is an abridged version of our Daily Report.

Ignoring the rise in rates

Despite a steady rise in interest rates, the U.S. dollar has declined more than 10% over the past year.

That’s unusual, especially given the magnitude of the fall in the dollar and the rise in rates. The other times it happened, the dollar continued to decline, stocks did okay, while gold and commodities did best.

Signs of buying exhaustion

For the past two days, stocks have opened higher but weren’t able to sustain buyers’ initial enthusiasm.

When occurring at a high, such days tend to lead to short-term weakness.

Dow divergence

The Dow Industrials closed at a new high on Thursday, while the Dow Transports have lost more than 1% on each of the past two days. Incredibly, that has happened only 4 other times since 1930.

Bad breadth, again

Not sure this matters anymore, but the Dow managed its back-to-back new highs with more declining issues than advancing ones on the NYSE both days. That has happened four times over the past couple of years.

For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today.

The post titled Dollar Ignores Rates As S&P Shows Exhaustion was originally published as on SentimenTrader.com on 2018-01-26.

At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.


Follow us on Twitter for up to the minute analysis of market action.


Not ready to signup up for a free trial yet?

Signup for our Daily Lite email to receive highlights of our daily report, research and studies.



RSS Feed

Subscribe to the Blog RSS feed

Recent Blog Posts


As mentioned in...

Brought to you by:

Sundial Capital Research Logo