Confusion over central-bank policy, financial system leverage, economic stability/prospects and impacts of quantitative easing, have created volatility and triggered an epic short squeeze. As confusion reigns and bulls become bullish they may attempt to attribute advancing prices to fundamentals or to expected central-bank policy for support. However, it appears that the US Dollar may find a bottom sometime this month and rally strongly into January. The initial start of the dollar rally appears likely to be composed of something of a shock. The question is will the markets believe it? Additionally, for this analyst the question is "will the markets be able to deal with it?"
Near-term, however, it is important to state that equity markets are poised for a pronounced decline for a week or possibly more which may be arrested at that point and rally again towards the early November.