The U.S. Dollar Index didn’t reach its 50-day moving average, and Thomas goes so far as to suggest that it may have formed a double bottom, which means it may bounce again until reaching its 50-day moving average. Thomas suggests investors to assume the dollar in a bear market with continued downward trends punctuated by short rallies. (Sector Highlight: U.S. dollar).
For more information on the dollar, visit our U.S. dollar category.
- PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP): down 9% year-to-date
- PowerShares DB U.S. Dollar Bearish (NYSEArca: UDN): up 8.1% year-to-date
Read the disclaimer, as Tom Lydon is a board member of Rydex Funds.
Max Chen contributed to this article.