DXY intermarket - correlations out of synch, dollar to fall?

The DXY has been climbing since the 15th of this month as markets wonder where else to put their funds. 

The US dollar's upside remains intact on the basis of the divergence between the US and the majority of other nations, especially Europe and Japan, China and the list goes on. However, that is all well and good for now. Many bets are placed that indeed the US is also already in a recession and there are risks that this bubble could pop.

The bubble that is the US economy currently, with stocks at all time highs, was created by the Fed as the US acted early and aggressively to counter the financial crisis of 2007 with the unorthodox policies, such as quantitative easing,  that were adopted well ahead of the other Central Banks. This is allowing for signs of a recovery and when data improves the dollar rallies on the pretext that the Fed will raise rates if data keeps on improving. 

Meanwhile, the correlations apply between the usual suspects, including  the yields, S&P and oil. Oil is tanking, corresponding to a rise in the dollar while short-term yields have improved and stocks still climbing to all time highs. However, what we are also seeing is a divergence between demand and the price of the DXY given 30ys rising, oil declining and the US dollar performance ahead of the curve. As oil consolidates, and attracts bids, a rise through $45.80/00 and on-wards in a full recovery could cap stocks and see the DXY fall from $97 to $93 in a short period of time, just as it rallied from 23rd June levels.