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The Matrix's trend remain relative static from week to week. There's moment when a few bigger names flash signals, but volatility across all markets generally fades them out. One fairly consistent trend, however, has been the rising dollar. The rising dollar index, driven largely by Euro weakness, has entered triple upside alignment numerous times over the past two years. It's poised to enter alignment again as the Euro tracks out its fourth day of triple downside alignment.
Skeptics say how long can this last? Longer than we expect. The US Dollar's DI, while falling as it rallies, does not define concentration distribution (see US Dollar Index DI). Concentration distribution or blocking domes generate profit-taking points. Secular trends usually require multiple blocking domes to reverse.
What's driving the dollar? Uncertainty in Europe, Japan, and periphery economies as the global economy continues to contract. Most American's either can't see the contraction because strong capital inflows into the country have hidden the effects of the deterioration. That may soon change as an ill-timed trade war and rising dollar smashes disposable income. Disposable income is a big deal for a consumption driven economy. US retail stocks severe underperformance of the broader market is the invisible hand's way of saying "WATCH OUT" a contraction in the US economy is approaching.
US Dollar Index DI
Using the Matrix
The value of the Matrix is far more than a study of price. Trends are a function of price, volume (force), volatility, and TIME. The order of their importance is as follows: (1) TIME, (2) volatility, (3) volume & price alignment. Volume and price alignment, a setup that triggers action, favors Grade A & B, early cycle markets under high compression (↓COM). ↓COM suggests extremely low volatility, a quiet trend ready to explode into high compression (↑EXP). Weekly and monthly breakout signals are not finalized until the end of the week and month, respectively. Signals generated before that could be temporary. Keep this in mind when reading alignment.
Suggested Reading: The Cycle of Accumulation and Distribution (CAD), Leverage Oscillator (LTLO), Diffusion Index (DI), Volatility Bandwidth (BW), Compression (COM), Expansion (EXP), Alignment, Upside Alignment, Downside Alignment, Sentiment Model, Intermarket Trends, VIX Model, Economic Activity Composite, Long Term Cycles.
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Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.