Once again, the major stock market indexes have come under pressure this morning. Once again, it is the intra-day strength in the U.S. Dollar Index (DXY) that has deflated the major stock indexes. We are living in a society where the stock market can only rally if the U.S. Dollar Index declines.
This morning, many of the major energy stocks are all coming under sharp selling pressure. Stocks such as Chevron Corp. (NYSE:CVX), Devon Energy Corp. (NYSE:DVN), and ConocoPhillips (NYSE:COP) are all trading lower. Energy stocks now account for 16.0 percent of the S&P 500 Index. Therefore, when these market leaders decline the markets seem to decline.
At this time, every trade is a trade on the U.S. Dollar Index. The action in the dollar is dictating almost every move inthe stock market. When the DXY trades higher the major stock indexes trade lower. The opposite is true when the DXY trades lower the major stock indexes inflate and trade higher.