The idea behind this week's chart is the most important one you're probably not following right now. It's the U.S. dollar and its abyss... Since registering a short-term peak of 81 in January, the U.S. dollar index, which measures the dollar's value against a basket of global paper currencies, has plunged 6%. While this doesn't sound like much to some folks, it's an enormous loss for a major currency in such a short time. This decline has taken the dollar to a key "abyss" level... the low of 75.63 reached last November. On March 21, the dollar index closed below this level... only to step back from the edge and rally back near 76. Dollar holders should keep an eye on this trading action. If the dollar fails to rally here, it's leaping into the abyss of sub-75... the low reached in 2009... And it's a strong indication the dollar is succumbing to the serious fiscal problems U.S. citizens and their elected representatives refuse to deal with.
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