Market Mover: Yep, It's Still All About the Dollar

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Market Mover: Yep, It’s Still All About the Dollar

Although there were a handful of stories that kept traders busy Wednesday such as Geithner extending the TARP, S&P’s downgrade of Spain, a nice report on inventories, a disappointing 10-year auction, and Bank of America getting out from under the TARP, the real story behind the movement in stock prices was once again the dollar.

Take a peek at the first two charts below, which show the PowerShares US Dollar ETF and the S&P 500. Note that the trend of the Dollar was down-up-down, while the S&P was up-down-up.

The good news for anyone holding stocks is the dollar did not manage to break above an important technical level and wound up falling into the close. Which, in turn, meant that stocks and commodities enjoyed a nice rally into the bell.

 

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PowerShares DB US Dollar - Intraday

S&P 500 - Intraday

PowerShares DB US Dollar - Last 3 Months

S&P 500 - Last 3 Months

S&P 500 - Last 12 Months

S&P 500 - Last 3 Years