Today’s Chart of the Day was shared on Twitter by Mike Zaccardi (@MikeZaccardi). Yesterday, we discussed why a sharp move higher the US Dollar is one of the biggest potential risks to Stocks in the near-term. Today we have a weekly candlestick chart of the US Dollar Index over the past 20-years. Mike points out that we're approaching an important level around $88.50. As you can see, this level has acted as a key inflection point several times over the past decade+. If the Dollar is ever going to mean revert higher, this would be a logical level to see that happen. If the Dollar slices below this level instead, it would likely be a bullish development for Stocks and other risk assets. Either way, the Dollar looks like it's about to give us some valuable macro information. So, it would probably be wise to keep an eye on how it behaves around this level over the next few weeks.
Chart of the Day - Wednesday, January 13th, 2021
January 13, 2021
