Ominous Sign, Even As Stocks Near New Record Highs?

Shawn Langlois at Marketwatch shares this with us today:

The S&P’s performance relative to the U.S. dollar DXY, -0.01%  is a good indicator of bull and bear markets, according to Geoffrey Caveney of the Dr. Strangemarket blog, and right now it’s telling investors that trouble is lurking. He says the stock market has been on a steady decline against the buck for the past 16 months.
Basically, the ratio — the value of the S&P 500 index divided by the value of the Dollar Index — tends to stall out a year in advance of a bear market. It happened in 1999, and it happened again in 2007. Guess what, as you can see by the chart, it’s been a year since it started stalling out this time around. “Such a trend has never occurred during a bull market in at least the past 25 years,” Caveney explained, who added that all this pretty much indicates we’re “already in a bear market now.”