Anthony Speciale Stock Market Analyst

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MORE MONEY, MORE QUICKLY, MORE SAFELY.

What To Do as the US Dollar Index Tests Key Resistance

The pain of the inflation hasn’t really hit yet. But once their surplus of savings runs out, it’s going to start to hurt.

It’s no great secret that we’ve just witnessed the greatest manipulation of money in history.

To the best of my knowledge, the US government has never before handed out as much money to the public as they have in the past several years…

Billions of dollars have been put into circulation through direct payments, stimulus, Paycheck Protection Program (PPP) loans and who knows how many other programs.

Needless to say, folks have been flush with cash.

Between what they received from the government and from staying home for nearly two years, the personal savings rate is higher than it’s ever been.

The Inflation Ripples

Think about it… You stay home for a few years with no dinners out, no social gatherings, no traveling, no shopping…

Yes, money was spent in ecommerce and home improvements, but you made your coffee at home in the morning. You didn’t go out and buy it.

Folks didn’t understand what the ripple effect of that was going to be. Well, we’re seeing it now with record inflation.

People are still flush with cash, so the pain of the inflation hasn’t really hit yet. But once their surplus of savings runs out, it’s going to start to hurt.

Watch the Dollar

What does this look like for us as traders and investors? There’s one chart that tells us…

Weekly Chart of US Dollar Index — Source: TradingView

The chart image above shows the US Dollar Index. I’ve highlighted a few key things that you should be aware of…

  • The Dot-Com Bust in 2001-2002
  • The Great Recession in 2008-2009
  • And the COVID-19 Bear Market in 2020

Why do I point out these areas? Because during each of these notable events, there was a noticeable spike in the price action of the US Dollar Index.

What Comes Next?

We’ve just endured a range bound period since 2015. Notice how the price action is starting to push through and settle above the top of the range this past week.

If we continue to settle outside this noted area, we’ll likely form a new peak.

There is descending resistance located at approximately $110, so it’ll be interesting to see when and where the market tops out again and what follows that price action.

Looking at the past, it’s typically not a very positive scenario when this occurs…

However, when the market suffers a loss, there are incredible opportunities to be had!

Ready for the Big Debut?

Before I go, I need to invite you to a LIVE special event happening on Thursday, May 26th at 1 PM

My colleague and expert trader Josh Martinez is set to unveil his brand-new professional-grade system that virtually anyone can use with minimal upfront investments…

We’re talking as low as FIFTY BUCKS! You don’t want to miss this!

Click here to snag your seat for the main event happening Thursday, May 26th at 1PM.

Rules to Live By

“If people refuse to look at you in a new light and they can only see you for what you were, only see you for the mistakes you’ve made, if they don’t realize that you are not your mistakes, then they have to go.” Steve Maraboli

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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