Pros often point to the stronger dollar as a headwind for the stock market and from what we’re hearing the headwind is going to get worse.
Although a strong dollar sounds like a good thing -- after all it suggests strength - it's actually a problem for bigger companies because when they repatriate profits made in other nations, they get fewer US dollars.
An example of that happened earlier this week. IBM cited currency headwinds as a drag on earnings. Big Blue said currency charges lowered its revenue by about $1 billion.
And if proprietary research from Jeff DeGraaf is right, that phenomenon won’t stop anytime soon.
DeGraaf, of Renaissance Macro Research, is also a CNBC Contributor and has been the #1 ranked technical analyst by Institutional Investor for 7 years. So when he talks charts, we listen. And he says the charts are signaling dollar strength – for some time to come.