Chart of the Day - Thursday, February 23rd, 2023

Today’s Chart of the Day was shared by Greg Rieben (@gregrieben). This is one of the more concerning charts out there right now. It's a daily candlestick chart of the US Dollar Index ($DXY) over the past 16 months. The Dollar has been rebounding since the beginning of February, closing at a one-month high today. It reclaimed $103 a couple of weeks ago, forming what looks like a failed breakdown. $103 has been a crucial level for the Dollar Index as it represents the former highs from 2016 & 2020. Greg calls it the 'wrecking ball' because Dollar strength has been putting pressure on risk assets for more than a year now. It's no surprise that Stocks, Gold, and Crypto started struggling earlier this month when the Dollar started bouncing. As long as $DXY is above $103, the risk is to the upside.