Chart of the Day - Wednesday, October 16, 2024

🏆  Today's Chart of the Day was shared by Jamie Saettele (@JamieSaettele)
 

• The US Dollar Index ($DXY) has closed higher virtually every day this month. It's up +2.75% in October, putting it on track for its best month in two years.  
   
• Jamie points out that $DXY is approaching its 200-Day Moving Average after bouncing directly off its 200-Week Moving average. Crude Oil and the 10-year Yield were bouncing with $DXY, but both are pulling back this week.
   
• Stocks have been immune to Dollar strength this year. Even after the Dollar's recent bounce, the S&P 500 is barely off a record high during a seasonally weak period. Imagine what stocks would be doing if the dollar wasn't ripping.

Takeaway: The Dollar ($DXY) has bounced sharply off its 200-Week Moving Average to its 200-Day Moving Average after rising every day this month. However, risk assets have shrugged off this potential headwind.