2011-04-02

Market Cap heading for adjusted US dollar fall?

I've adjusted the Russell 3000, an indice that measures market capitalisation, by the value of the US Dollar as measured by the USDX index, and I found this interesting thing:



Financial analysts have often used little thingys like lines of resistance or something like that. I don't fully understand it but it seems to show that a potential high has been reached and that maybe, just maybe, there'll be another drop. In the context of this particular graph, it would be either a drop in the value of the US Dollar or a drop in the value of the Russell 3000, or some combination of both.

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