Employment unexpectedly surged in September, supporting the case for another Fed rate hike.  Futures were not amused and are taking another swipe at their 200-day moving average.

continued for members…

The 200-day has continued to rise since the first try a few days ago. SPX is now at 4205.85 based on yesterday’s close and roughly 4207.95 based on today’s open.

Note that VIX has not made a higher high and its RSI is making another lower high.EURUSD is down very slightly.

And, USDJPY and NKD are quite likely to bounce after backtesting their SMA200s. All the bulls need is for DXY to break down……and the plunge in oil/gas…

…to be reflected in a pullback for the 10Y.I don’t know whether the government will shut down in a few weeks, but there are very good odds that rates have topped, VIX will fall below its SMA200 again, USDJPY will rebound at its SMA200, and stocks will bounce after SPX reached 4208.

Even XLU is poised to tag its channel bottom at or near the cycle low.

GLTA.