"We've seen this rally attributed to many factors, but one that doesn't seem to be getting enough play is the drop in the dollar"
That's why the market can rally on weak volume.As long as the dollar is moving down the market is moving up,regardles of the volume.That's one reason traders are confounded by this market. But the dollar is way overdue for a technical bounce higher. And it's probably oversold on the fundamentals too.One major catalyst is off the table - chinese-russian talk of a global currency.The chinese are back buying treasuries and their finance minister admitted the dollar will remain the reserve currency for some time to come. On that basis the dollar is now sold down to near panic levels. It SHOULD bounce higher.It just hasn't happened. Yet.
If it does expect the VIX to jump with it. Then the market will correct down.