“Going back long term, the dollar versus the S&P as a ratio features a few significant bottoms of which end up leading to a period where the dollar severely outperformed the S&P 500,” Ciana said on CNBC’s “Futures currently” on Thursday.
For example, in 2000, the ratio found a bottom before the dot-com bust sent equities tumbling as well as the dollar soaring. of which was a similar setup in 2008 as well as 2014-15, said Ciana, BofA’s chief global fixed income technical strategist.
“currently we’re having another one right in here,” he added. “What ends up happening in these time frames is actually the dollar ends up outperforming while the S&P 500 of course underperforms. of which means, buy dollar, sell stocks.”