One way or another, algos keep on finding a way to spark a rally in the hours leading up to the open.  Yesterday, it was a VIX dump (that didn’t last.) Today, it’s a rally in oil and gas futures.

Yet, as CL’s chart shows, these have been bounces on the way to lower prices.  At some point, you’d think actual investors would notice.  Unfortunately, they’re outnumbered by computers that disregard the logic and intent behind “breakouts.”continued for members…

ES is showing gains of about 5 points at present — still in breakout mode but fading relative to the rising purple channel.

VIX seems to still have a clear path to 10.73 or even 11.34.USDJPY’s flat purple channel might finally be breaking down.

Note that DXY gapped lower overnight.

Yet, this is offset by CL, which is almost certain to test its SMA10 and, quite possibly, push above it — at least intraday.

RB’s along for the ride.

This leaves SPX still in breakout mode, with a nice cushion between it and 2536-37 and a huge cushion (by 2017 standards) above 2500.Gold continues to rally nicely off our downside target.

UPDATE:  12:00 PM

ES/SPX are clinging to a slight gain even as DX and USDJPY continue to fall and VIX approaches our upside targets. Note that USDJPY just tagged our next downside target and might get a bounce here.  CL is rallying to offset it, but with CPI due out in a few days shouldn’t hold these gains.

I have to run out for a meeting and probably won’t be back until after the close.  More then…