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. I would hazard a guess that the futures are up every bit as much as a result of the dollar falling back a bit tonight and crude rising, as they may be up due to the stupid CIT story. The dollar and equities/commodities are inversely related.
I think it's the equities going up that's declining the dollar. Vast amounts of dollars being printed and pulled out the system push down the dollar when they PPT the equities. Then vice versa when they sell off. Why the dollar is worth more then peso is beyond me. Same reason people still trade treasury bond ponzi debt? Military might? Fits the needs of the elite?
"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.