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The DXY (cash dollar index) continues to leap higher in reaction to uncertainties about the sovereign debt conditions of a subset of countries referred to as the PIIGS. Let's notice that after emerging to the upside on 1/28 above 23.20, the PowerShares DB U.S. Dollar Index) has rocketed 2% in the past 6 sessions amidst constant negative news about widening Greek, Spanish, and Portugese CDS spreads. Today's strength is interesting in light of the rumors about an emergency meeting of the ECB, which hardly created a negative reaction in the dollar (UUP). It could be that Mr. Market is on the verge of PUNISHING the debt and currencies of countries whose govt authorities throw bailout money at a too big to fail problem. Austerity just might be the new order of the day-- investors beware. Under such circumstances, the UUP could have considerably higher to climb-- into the 24.25/50 area next. MJP 2/05/10 11:30 AM ET (23.65)