Is this the week where the dollar will take down stocks?

Is this the week where the dollar will take down stocks?

As earnings season kicks off this week in earnest, is the stronger U.S. dollar threatening to make things even worse for the rattled stock market?

Financials and big tech names such as Google, Intel and Netflix are announcing their third-quarter results this week. However, there's a potential worry for America's largest companies doing business overseas: the climb of the greenback. Though its record of 12 weekly gains has come to an end, the U.S. dollar index is now 8 percent stronger than it was at the start of that quarter.

Early reporting companies like Alcoa and PepsiCo soundly beat expectations, but Chantico Global founder Gina Sanchez believes the dollar's ascent may hurt the nation's largest companies in the quarters ahead.

A little more than $2 of every $5 in revenues for Alcoa, PepsiCo and the benchmark S&P 500 index come from outside the United States, notes Sanchez, a CNBC contributor. "It hits companies in two ways, both their expenses and their revenues, she said. "I don't think it's going to come out exactly this quarter but it will start to come out. You're starting to see analysts revise down revenue estimates for most companies with international exposure."

Yet based on the technicals, Todd Gordon, founder of, isn't as worried about dollar's effect on the market.

"For most of this year, we've seen the dollar and stocks trade together," said Gordon, a CNBC contributor. "Since September 25, the stock market and the dollar gave a shot of trading with an inverse correlation. I think that correlation is now coming back together."

Once stocks find their low, correlation will return to being positive, Gordon said. That low may be achieved fairly soon if his charts are correct.

"There's a nice confluence of technical support which is a combination of uptrend channel support as well as the 200-day moving average right around the psychologically important 1,900 to 1,905 level," Gordon said. "So ... that point I think is when they'll rejoin each other, continuing rallying until the end of the year."

To see the full discussion on the dollar and the S&P 500, with Sanchez on the fundamentals and Gordon on the technicals, watch the above video.

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