Straight to the point, Dealers are accumulating DXY , going long, extreme long 90%+, while as speculators (large spec/small spec aka RETAIL traders) are extreme short. Clearly we are within a downtrend for DXY , with a potential in the making. Yet, with the knowledge of dealers being extremely long on the dollar, this could be a pattern of accumulation. Which would set off a chain of short squeezes to make retail lose money (as always). Right now, it looks like DXY has found a base and has created 2 higher lows from the previous low, which is a sign. The red dotted lines indicate an area of supply where there are sellers waiting with positions. I am NEUTRAL currently because I want to see either a breakout of the current downtrend line or a breakdown at the downtrend line. If its a short, short to the lowest white line. If its a breakout, wait for a retest of the downtrend line and long to the . Since it is near the election and end of Q3 going into Q4, most market participants want to go risk off and go full cash.
TLDR: Dealers extreme long on the dollar = DOWNY EQUITIES