The last couple of times this happened the dollar had a big rally. The dollar is generally weak in extreme risk on environments and strengthens during risk off. So it makes sense the dollar is weak now.
The smart money has gone net short stocks for the first time in months. They’ve also started to short the U.S. dollar.
The last two times they flirted with longs in the dollar and then flipped to short, the buck proceeded to rally strongly. Commercial hedgers have underlying exposure to the contracts they’re trading, so while it always seems like they’re fighting the primary trend, they’re not. They’re just constantly adjusting their exposure and should never truly be net short any market.