I ran an interest rolling 90 day correlation analysis on the Nominal Broad US Dollar Index and S&P 500 over the last 10 years. The fact that the S&P 500 was staying "Stable" over the last 3 days was really messing with my brain. Should add this is correlation in the change in price.
https://preview.redd.it/phhshy2922ve1.png?width=1167&format=png&auto=webp&s=fd7126cf331905b3660cfc629e87b4977f6abb4b
Data was Sourced from FRED.
I think the weakening of the inverse relationship between essentially the US dollar Strength vs the S&P 500 performance is where some of the disconnect between policy action and Market reaction is occurring. Granted this relationship has always been relatively weak in terms of magnitude but definitely think this helps explain why the S&P isn't moving down as fast as I would of though.
Interest that only time the coefficient of these were positive was during Trump's first term and slightly before the 2018 mid-terms (TBF the reversal started occurring during June 2016 but guessing that may also be part of Brexit's impact)
EDIT: Spelling