Chart of the Day - Thursday, November 11th, 2021

Today’s Chart of the Day was shared in a note by John Roque of 22V Research. It's a chart of the US Dollar Index ($DXY) over the past two years. John points out that the Dollar is breaking out of a 16-month base and an inverted head & shoulders pattern. It's currently trading at its highest level in more than a year and looks poised to continue higher. Conventional wisdom would say that a rising Dollar is bearish for risk assets including Stocks, Commodities, and even Crypto. However, the Dollar has been trending higher all year, and yet all three of those asset classes are rising along with it. Will it eventually matter? Maybe. But, it can be hazardous to overcomplicate things by reading too far into the intermarket implications of a rising dollar.