Time to go red alert?

I've been saying a few times now that the dollar looks really, really bad. I've also been saying that the only thing that can (temporarily) save the dollar is a run from the euro into the dollar. Now, this run does not seem to materialize, and we just had a very, very bad development.

This is the dollar index, and apparently that was the bounce we got out of the latest downdraft. A few steps down, we have the lows from November, and if those are taken out, there may be a general sense of panic. All time lows are a few percent further down, but I probably don't need to remind anyone that the dollar has been trending down since the worries over Europe abated last year. Either we have a new Euro-crisis, or the dollar may take out all-time lows.

From what I've read, dollar sentiment is currently still bullish among retail traders, although hedge funds are starting to put down bets against the dollar. Since retail traders usually get caught on the wrong side, the implications of this are not very good. When the dollar made its lows in 2009, dollar sentiment was somewhere around 97% bearish. We are nowhere near those levels yet, which may indicate further downside.

Hold on to your hats.