The grind higher continues, driven by an earnings beat by JPM and Chevron’s $33 billion offer for Anadarko.  It hasn’t hurt that USDJPY has (again) spiked above its SMA200……and VIX is (again) testing trend line support dating back to its 8.56 lows on November 24, 2017.As an aside, that 2017 low was a bit of a travesty.  SPX was rolling over in the final hours of the last trading day before Thanksgiving [details HERE.]  Out of nowhere and on zero news, VIX plunged 11.7% in a matter of seconds.But, hey, all’s fair in love and algo-driven rallies.  SPX melted up another 271 points (10.4%) over the next two months before giving it all back over the subsequent 9 sessions. Not to be too dramatic about it…but, whether or not VIX breaks down now will determine whether stocks remain in a holding pattern or go on to test their all-time highs.

continued for members…

VIX is also testing the yellow channel bottom that kept stocks rising for most of 2017.

CL and RB are acting very subdued — all things considered. While futures are up 18 points, VIX support means there is a very good chance this is a pop and drop in the making.EURUSD is breaking higher again, today.  It’s worth noting that the SMA200 is finally down to a point where the pair could tag it without registering a new high. This is being somewhat offset by USDJPY.  But, DXY is still under pressure.

Rates are popping higher this morning, but not so much as to impinge on the trend.I remain open to the possibility of VIX breaking down; but, I believe this rally should be faded. UPDATE:  4:00 PM

At the close – a new interim high, but VIX is clinging to support.  USDJPY is seemingly off to the races, threatening a new high.