Many historians & economists believe that over the longer period of time nation's major stock market follows the trend of nation's currency; mainly these analysts are from Austrian School of Economics & some Monetarism believers. And history has proved times, they both go on 1:1 ratio.

So I thought let me look at current percentage ratio between SPX & Dollar index with combining Nikkei & USD/JPY.

In this chart, we are seeing that Nikkei closely follows USD/JPY, but situation is not same with Dollar Index with SPX. But in the past SPX had gone 1:1 with Dollar Index. The key analysis @ same time will be JPY vs. Nikkei. USD/JPY has to fall near 95 in order to prove this theory. Long term technical analysis on SPX also says that it should fall near 1050. With so much money supply, we already know that US Dollar is not going to recover soon.

Again, this is very long term 1:1 ratio theory beween SPX:US Dollar. But for right now, let's enjoy some rally. :)

Red: USD/JPY, Black:US Dollar Index, Green: Nikkei, Blue:SPX