Just as the markets were hitting their lows of the day at $113.18 on the SPDR S&P 500 ETF (NYSE:SPY), the 'powers' that be started to drop the U.S. Dollar quickly. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) dropped from $23.07 all the way to $22.87. The coordination of this drop makes one think, there is more at work here than just normal market activity. As the Dollar collapsed, the markets rallied sharply higher off the lows and have since turned slightly positive. An ugly day was avoided and the markets are sitting pretty.
Chief Market Strategist