Dollar And S&P Trading In Tandem (UUP, SPY)

Looking for an early indicator on market direction in today's action? If you're not into futures, compare the daily charts of the PowerShares DB US Dollar Index Bullish (NYSE: UUP) and the SPDR S&P 500 (NYSE: SPY).

As the three-minute charts show, the U.S. dollar is leading the S&P. When the dollar strengthens (UUP goes up) against the Euro, the SPDR falls; when the dollar weakens, it rises. It would appear as though algorithmic traders have set this trade in for the day. Follow the money.