US Dollar & Small Caps Could Surge With Tax Reform Being Passed

US Dollar & Small Caps Could Surge With Tax Reform Being Passed

US Dollar has been flatlined for 3 years and steadily declining throughout 2017.

The House has currently passed their version of a reform bill and the Senate Finance Committee passed its bill on to the full Senate for a likely vote this week. Indications are that the Senate will pass its bill, triggering the reconciliation process between the two Houses of Congress.  It is expected that this process will be difficult, but many experts believe a compromise bill will be passed during the first quarter of 2018.

If so, this may thrust the US Dollar above its 12-month resistance and head higher.

In addition, the passing the Tax Reform bill may also push small caps higher, especially if the US Dollar appreciates.  Coincidentally, small-caps just broke above their 10-year rising resistance level, a bullish indicator: