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Markets Start Out With A New Year Popd

This is the first trading day of 2012 and all of the major stock indexes are trading sharply higher before the opening bell. The S&P 500 Index e-mini futures (ES-H2) are surging higher by 18.25 points to 1270.75 per contract. The catalyst for the rally ahead of the opening bell is the better than expected European data from Germany and the United Kingdom, however, it is really the weaker U.S. Dollar Index. As we all should know by now, when the U.S. Dollar Index (DX H2) declines the major stock indexes will usually inflate and trade higher. Traders should continue to follow the U.S. Dollar Index very closely as the inverse relationship to the stock markets are still firmly intact.    ...Continue reading here