USD as a tool for reading market sentiment?

[themickey]

Does anyone know how to read the USD usefully in the context of correlations to the stock market indexes.

Below is a chart of SPY versus DXY (USD Index) and correlation appears to me to be very vague.

Is anyone able to make head or tail of how it might be found useful?
Or is the correlations fleeting, random?

 

[murray t turtle]

%%
YES;
I always price SPY+ QQQ in that currency.
100 year chart may give some clues;
+1964silver JFK=half US$ is worth whole lot more than $00.50
1974, same coin or WMT= worth much, much more , more risk also
NOt a silver tip or stock tip.

 

[ButterflyEffect]

I have never found a use for the dollar index in this way.

Part of the issue is some 50% of the index is Euro. I wouldn't expect EUR/USD to have much correlation with SPY just based on macro economics and the central banks mirroring each other.

I think the crypto markets probably give the best sentiment for risk on/risk off right now.