All of the major stock index futures are surging higher this morning on news of a European Union bailout. While we have heard this bailout story many times before we must trade what we see and not what we think. The S&P 500 Index e-mini futures (ES Z1) are trading higher by 19.50 points to 1178.00 per contract. The German DAX, and the French CAC-40 are both trading higher by 4.00 percent. All traders and investors should remember when the markets increase sharply higher it will usually mean that the U.S. Dollar Index (DXY) is trading lower. That is certainly the case this morning, the U.S. Dollar Index futures (DX Z1) are trading lower by 0.64 cents to $78.42 per contract. When the DXY declines everything inflates and trades higher.
