By TRADER X on January 27th, 2010 3:52pm Eastern Time
The U.S. Dollar index has moved in an inverse lockstep relationship with the overall stock market. As the dollar declined intraday the SPDR Trust(NYSE:SPY) rallied higher. While the dollar is at new highs for 2009 the inverse moves seem to correlate very well with the SPY intraday. Often the institutional traders will have computer programs that will trade directly inverse to the dollar. It is important to remember the SPDR Trust(NYSE:SPY) is a basket of the S&P500.
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