King Dollar Down, But Not Defeated

Those declaring the end of the greenback may still be a bit too early, despite the ferocious rally in commodity stocks and most things "inflationary," of late. 

The UUP, ETF for the U.S. Dollar versus a basket of developed economies' currencies, did indeed lose fifteen-month support (lower light blue line on daily chart, below) over the last month or so. 

This weakness could have easily catapulted those aforementioned miners and energy stocks to multi-month, muti-quarter, even multi-year highs in some cases. 

But what if the Dollar breakdown was a bit too obvious? Even if the Dollar is in the early phases of collapsing, for argument's sake, there may be a need to keep some greenback shorts honest (and newfound miner momentum longs honest, too, who are chasing up here) with a bit of a bounce-back. 

Note the UUP strength today off the early-April lows. 

A multi-day bounce in the Dollar now may do wonders to reset some wildly extended steel and silver miner charts, for example.