I've pretty much given up on trying to make any sense out of what the movement of the USD means to the stock market. All spring the dollar was getting crushed and everyone was saying that was a good thing for the stock market. Then once the stock rally started going, the dollar caught fire too. During that period many of the pundits cited a stronger dollar as fueling the stock rally. (go figure) Well over the last 3 days the dollar has broken its June - September uptrend. I won't attempt to say what that means, but it may be worth watching.
Does the Dollar Matter?
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As long as the US continues to print money, the real trend on the dollar should be down. However, I hear/read that the rest of the world's major currencies are racing to devlaue their currencies as well, so on a relative basis the dollar can hold its own. Gold is the real deal to watch. Currencies get cheaper the more expensive gold gets. I suppose China's persistent attempt to keep its currency fixed to the dollar also gives the Greenback support. So, yeah, given all this madness, it is hard to discern what it all *really* means for the stock market!