All this is composed of mind (and) the mind does not exist specifically;
So like the blue, etc. in the sky, the moving world is seen in the Self.
Commentary
The totality of what is seen and named in the moving world is actually mind. Whatever is limited, existing in a specific place, is not mind. The Taittiriya Upanishad (III. 4) declares, "The Absolute is mind." Mind is not a specific object, localized in a particular area, because this would be a limitation and a conditioning. Mind is absolute, all there is, was, and will be. The Lankavatara Sutra (III. 121) also confirms this: "There is nothing in the moving world but mind itself."
"The blue, etc. in the sky," means that the colour, clouds, etc. are a superimposition on the sky, just as the world is a superimposition on the mind, and so, in reality, "the moving world is seen in the Self." The Self is the one unchanging reality, not the world of phenomenal change. In this verse the sage clearly outlines what the relative and absolute factors are in relation to mind and the moving world.