The correlation between the dollar and the stock market is still there, Chris Zwermann from Zwermann Financial said Monday. He sees a weakening U.S. dollar-Japanese yen cross pulling stock markets lower, with the Dow falling below the 9,000 mark.
"We see in the dollar-yen and in the Dow Jones (Industrial Average) this situation that the Dow Jones was going up further and the dollar-yen was already on the way down. So now what we see here is that now the dollar-yen might pull down the stock markets," he said.
The same can be said of other correlations, such as in Germany's DAX index and euro-yen, he added.
Zwermann's sees the Dow slipping below 9,000, and expects the dollar to fall to 90 yen. He sees the dollar-yen falling to that mark this week from its current rate of 94 yen.
"All emerging market currencies have gone up quite a lot," Zwermann said.
If we break above 122.50 on the 10-year Bund future, there is a possibility we will rise to 127, he told CNBC.
"The curves are going to steepen further in the U.S.," Zwermann said when looking at the 10-year Yield note.