This chart is the key to markets. Look how the chart has progressed throughout the year.
There are several key developments to this chart.
+The first thing of note is when the ratio topped out July, 2014: When the Dollar began outperforming equities.
-To be clear, the Dollar is up an astonishing 23% where as Equities are up a meager 3% in the time since.
+The ratio weakened until a new major downtrend was established with cross of the 200 & 550dma.
+In August, the trend of USD:Equity outperformance was confirmed when equities crashed.
+The dead-cat bounce in stocks post-crash was stopped dead in it's tracks when the magic ratio retested it's 200dma.
Recently the ratio found resistance, this time at it's 50dma.
I speculate that the magic ratio will soon flex it's muscle again and we see a big up-move in the dollar, down-move in equities, or both...
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