Weekly futures trading data calculations have shifted and indicate the Dow is significantly undervalued relative to the U.S. Dollar. Capital continues to move out of Europe pushing the U.S. Dollar higher. This flow of capital has created a distortion in relative values of various products, such as the Dow Jones Index. At this point calculations show the Dow will not have a sharp decline in 2022 as expected. Commercial Futures Traders are positioned for the Dow to move back above 36,000 during the first quarter of 2023.
The chart below provides key points where the Dow has been undervalued relative to the U.S. Dollar.
Chart courtesy of StockCharts.com.
