Higher Dollar Could Derail Market Rally

the overall technical backdrop for the S&P 500 index remains bullish. Traders should prepare for at least another attempt to rally in the coming days. Although market climate remains bullish, it requires caution. Right now, the most important thing to look for the March high on the U.S. dollar. Given the inverse correlation between stocks and the dollar, a sustain breakout above that level follows by a new leg up is a negative sign going forward for stocks because, after all, the greenback is the dog wagging its stock market tail.