All any trader or an investor has to do to see why the stock market is trading higher today is to simply look at a chart of the U.S. Dollar Index. Today, the U.S. Dollar Index futures (DX-U2) plunged around 10:50 am EST. Once the U.S. Dollar Index started to decline the major stock indexes started to inflate and trade sharply higher on the session. The S&P 500 Index e-mini futures (ES-U2) rallied higher by nearly 20.0 points off of the morning lows as the U.S. Dollar Index sold off. The U.S. Dollar Index chart is clearly the most important chart that any trader can follow. Traders that do not have a U.S. Dollar Index can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP).
Some leading equities that will rally and inflate higher when the U.S. Dollar Index declines includes United States Oil Fund LP (ETF) (NYSEARCA:USO), Exxon Mobil Corporation (NYSE:XOM), Market Vectors Agribusiness (ETF) (NYSEARCA:MOO), and the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA). Traders should remember that when the U.S. Dollar Index rallies these same equities will deflate and trade lower.