DXY
had a bad close last friday and was pretty bearish. I opened on monday and close inside the pennant down. Most likely DXY will now move to 106.154 and wash out some bears who got trapped in the little box ive drawn.
There is this saying that if DXY moves upwards than stocks go ahead and dump and people convert there assets back into the dollar. This is logic because the strenght of the dollar is going up if DXY is up.
Further I would like to say that some assets dont react on this at all because they are stocks and commodities which are good for beating inflation. Think of stocks like BTC, GOLD, SXP ....
All stocks go toghether and have input toghether. They move based upon what the other does. Not all the time, but then the narrative or the news plays a big role in the development of the price of a stock.
Let's say that China is banning the dollar than the stock market will be in awe just because of some news, you cannot alter this news into a TA.