The Turn has Begun

The recent action in the $USD and $TNX (there are several $USD & Bond charts on that same list) paint a good picture of what the market is expecting and preparing for around the FOMC meet on Jan 26-27. With the $USD being fairly valued around 76-77 and the absence of the carry trade taking pressure off too, it has become a flight to safety for at least the short term again. Bonds have been preparing for this for a the last few months too, but seem setup for another decent bounce off support around the FOMC meet. In the past, stocks rallied as you would expect with bonds, but this time it might be different especially given the valuations and recent deterioration in the technical view.

(live link to the chart above)