Dollar Up, But Market Correlations Go Haywire
The Labor Day holiday did not have the expected effect on markets, as the US dollar rose to 98.805 by September 26 and crude oil prices increased to $95.35 for October 26.
In contrast, the S&P 500 e-mini ES contract fell by 82 ticks and traded at $7760.00, while gold dropped to $4438.20 for December 26.
This unusual correlation has raised questions about market behavior, with the author noting that 'this is not a correlated market'.
The 30-year T-bond price rose by three ticks and traded at $108.15, which should have followed the US dollar's increase but instead behaved independently.
Traders are advised to be cautious due to potential volatility, as major events such as the ADP Weekly Employment Change at 8:15 AM EST and the 10-year bond auction starting at 1 PM EST may impact market trends.