Whichever way you slice it, it all comes down to the dollar....

Whichever way you slice it, it all comes down to the dollar. It doesn’t matter whether we’re looking at the U.S. U.S. Dollar Index or emerging market currencies. It’s a dollar story, and it impacts risk assets.

The overlay chart of the Emerging Market $Wisdomtree Trust Emerging Currency Strategy Fund (CEW.US)$ and the $S&P 500 Index (.SPX.US)$ highlights critical former lows. In the spring of 2016 and 2020, both these indexes bottomed around the same time before experiencing significant uptrends.

Now that emerging market currencies are back, will we see similar action as we have in the past? If CEW is breaking below that crucial shelf of former lows, then stocks could make new lows as well. $SPDR S&P 500 ETF (SPY.US)$ $Invesco QQQ Trust (QQQ.US)$