Market Insider

What traders are watching as stocks warm up to Fed

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Keeping focus as dollar strengthens
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As stocks settle into the view that the Fed may really hike interest rates this year, focus is shifting to the rising dollar.

So far, the greenback has gained more than 2 percent against the euro in the past week, but it is expected to continue to rise as the central bank moves to raise interest rates from zero for the first time in nearly seven years.

"How I look at it, is this dollar secular bull market is coinciding with a secular non-bull market for commodity prices. When you look back at those periods when that has occurred, it actually tends to provide a very favorable environment for the stock market," said Ari Wald, technical analyst at Oppenheimer Asset Management.