Dollar sentiment bounces back

Many markets are highly sensitive to each other at the moment, with interest rates tied closely to the dollar (and gold) which in turn have been tightly linked to stocks, especially the high-growth tech names. The Optimism Index on the dollar has bounced from extreme pessimism, as Troy mentioned in a premium note.  When its Optix cycled from 20 to 40 in the past, the dollar usually fell further over the next 2 weeks, especially if we focus on the past 20 years. If it bucks this consistent trend and rallies, then it suggests the mostly negative long-term trend has changed.