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West Side Story

When the U.S. Dollar Index pops the stock market drops. The opposite is true when the U.S. Dollar Index drops the stock market pops. Just look at an intra-day chart of the U.S. Dollar Index below and notice how the SPDR S&P 500 Index(NYSE:SPY) rallied sharply higher as the U.S. Dollar Index pulled back. This is a market of inflation verse deflation. The only way to create inflation seems to be by forcing the U.S. Dollar Index lower. Even the Chinese are accusing the Federal Reserve Bank of artificially forcing the dollar lower. That must be the reason for the small bounce in the greenback today. It looks a s if the far east has a lot more control over the west these days.