In August, I pointed out that the US dollar index (DXY) was looking oversold and that a bounce in the 92 range could signal the next retest for risk assets on the other end of the dollar teeter-totter. Here was my partner Cory Venable’s big picture chart of the dollar index from 1995 to August 7.

(Click on image to enlarge)

Bouncing around in the $92 range to the end of August, the dollar held and traded through 93.50 this morning as other risk assets, commodities, and currencies have sold off. We are watching to see whether dollar support has legs through a weekly close. When it does, liquidation selling in other risk assets is likely to continue.