As April Comes to an End, All Eyes on the US Dollar...

As we approach the last hours of April, let's notice that the DXY (Dollar Index) and the CRBC (Commodity Index) are on the verge of enter "accelerating convergence," after spending the past two years at varying degrees of divergence.

That is to say, until recently, the strong Dollar negatively impacted the CRB.

However, since Jan. 2016, a significant and persistent stair-step decline in the DXY has removed stiff headwinds from the Commodity Index, which has appreciated by 20%.

Given the magnitude of the 14-month top formation developing in DXY, the CRB advance likely has a considerable period of upside directly ahead.