Another update in a series of posts on this subject. The selloff of recent days looks like another wiggle on this chart, not a change in direction. When the dollar rises and equities fall, as they have recently, it's a sign that the market is cautious. Everyone's been worried about a correction, and with good news today (the ISM report up much more than expected) failing to rally the market, lots of people are probably taking profits and retreating to safe havens like the dollar.
Concern over banking losses has presumably contributed to the weakness today, but I think the news that the economy is in full recovery mode, as suggested by the ISM release this morning, should trump just about everything else in the end.