The inverse relationship between the U.S. Dollar Index and the major stock market indexes is very well intact. Traders can look at an overnight chart of the U.S. Dollar Index futures and simply see when the U.S. Dollar Index made a top around 3:00 am EST the S&P 500 Index futures made a low. These charts are polar opposites at this time. When the U.S. Dollar Index inflates higher the major stock indexes will deflate lower. This U.S. Dollar Index chart should be followed closely by traders at all times.
Some leading stocks that have deflated lower as the U.S. Dollar Index bounces higher this morning include Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), and Chesapeake Energy Corp.(NYSE:CHK). Most commodity and energy stocks will usually deflate and trade lower quickly on the back of any strength in the U.S. Dollar Index. It is also important to note that the major stock indexes will deflate and trade lower as well if the U.S. Dollar Index trades higher.