DXY Does Not Participate in The Recovery Rally
The one market that is not (yet?) rebounding after yesterday's sharp decline is the Dollar Index (DXY).
Yes, the equity indices have recovered into positive territory, and the iShares 20+ Year Treasury Bond (TLT) has given back some of its earlier gains, but the DXY is numb to the attempted reversals in other major market indices.
For me, that is bothersome, and as long as DXY remains numb, my sense is that the upside reversal in equities and the pullback weakness in TLT will be short-lived.
Caution remains the watchword here...