DXY – NYBOT Dollar Index (Last:108.50)

Some think the dollar’s bull run is over because of Trump, but I doubt it.  Trump is viewed by conservatives and libtards alike as the cause of just about everything these days, but let them try to explain why stocks keep going up even though everyone is so upset about his tariffs. A strong dollar threatens to crush an era of easy credit and make it painful for all who owe dollars to pay them back. The dollar’s main source of strength is that the world simply cannot afford for the dollar to keep rising. It will undo all the assumptions that have made the ‘wealth effect’ the most popular invention in the history of civilization.  From a technical standpoint, the Dollar Index is in a so-far moderate correction from mid-January’s 110.18 high. I expect it to come down to at least 105.99, but we should see a strong bounce from that number, a midpoint Hidden Pivot, if new highs are coming. Alternatively, an easy breach of the support would imply more slippage to as low as 101.78.