This morning, the major stock indexes have been declining since the opening bell. Often, when the major stock indexes decline the U.S. Dollar Index will come to the rescue by declining intra-day, that is not the case today. Usually, when the U.S. Dollar Index declines the major stock indexes will usually inflate and trade higher. On the flip side, when the dollar rallies the markets will deflate and trade lower. Today, the U.S. Dollar Index is surging higher since 9:50 am EST putting pressure on the markets. Traders can easily see how the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) has reversed from earlier declines and is now trading into positive territory.
Today, the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA) is trading lower by 1.00 percent on the session. The more important stock indexes such as the PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), and the iShares Russell 2000 Index (ETF) (NYSEARCA:IWM are trading lower by 1.56 percent. Traders should remember that the QQQ, and the IWM are the growth sectors. All traders should continue to follow the U.S. Dollar Index very closely as the major stock indexes continue to trade inverse to the dollar. The major stock indexes will likely catch an intra-day bounce when the U.S. Dollar Index pulls back.