The dollar’s biggest rally since January signaled losses for the Standard & Poor’s 500 Index, according to Mary Ann Bartels at Bank of America Corp.
The Dollar Index, which tracks the currency against those of six major U.S. trading partners, had the biggest gain in 11 months on Dec. 4 and rose above its average level from the prior 50 days to close last week at 75.911. Bartels, who studies charts to make forecasts, said the gauge may now reach 76.82, a level last reached on Nov. 3. It has lost the most since 1986 in the past nine months.
“The U.S. dollar is bottoming,” Bartels, ranked second among technical analysts in Institutional Investor magazine’s 2009 survey, said in an interview yesterday. “It appears to be the most unloved asset class and sentiment is grossly oversold. A stronger dollar should be negative for stocks.” (more)
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