Dollar Index breaks Support

The Dollar Index was in a small range between 92 and 95. It has broken down below 92.

As we have mentioned before, a weak Dollar is great for Emerging markets, Equites.

See the long term chart of the Dollar Index with monthly 12 SMA and KST (Know Sure Thing Indicator)

The orange arrows show the periods when KST has given a sell and also the index is below the 12 month moving average on monthly charts. These periods have proved to be very good for Equities.

We have got a similar sell signal in progress now. As long as KST is in sell mode and we are below the moving average , it should be very productive to be invested in Equities in Emerging Markets.

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