One thing we’ve been trying to point out lately is that while the dollar has been firming of late, it really hasn’t hurt equity prices all that much. Gold and bonds have been hit far harder when the dollar firms.
Either this could signal a break — stocks are showing an ability to rally sans-a weak dollar, or it just means that equities are due to play catch-up with the categories by making a real move to the downside.
As we get closer to the big Fed announcement next week, this question is crucial.
For some perspective, these charts from Mike O’Rourke at BTIG plut the dollar vs. these various alternatives over the last few days, so you can get a relative sense of how they’re all holding up.