Chart of the Day - Wednesday, September 23rd, 2020

Today’s Chart of the Day was shared on Twitter by Michael Kahn (@mnkahn). It's a daily bar chart of the US Dollar Index over the past year. The US Dollar moved higher for the fourth straight day today and is now trading above that crucial $94 level. In recent weeks, we've noted that Dollar strength would likely be a headwind for other major asset classes, specifically Stocks and Precious Metals. Sure enough, we're seeing both asset classes struggle as the Dollar breaks out. At the risk of sounding like a broken record - the Dollar continues to be one of the most important charts to keep an eye on right now. Bulls want to see the Dollar resume its downtrend. However, if the Dollar continues to mean revert higher in the near-term, it could suggest further pain for Stocks and Precious Metals.