Non-farm payrolls exploded higher in May, tallying 339K versus 190K consensus. On the other hand, unemployment rose from 3.4% to 3.7%.

Futures initially slumped, as blowout job gains argue for further Fed tightening. But, VIX was hammered to lows of 15.12, a level not seen since Nov 2021, and the overnight ramp was salvaged, for now.

continued for members…

The equity picture still rests largely with VIX.

Will the large white channel break down?

Currencies are largely on the sidelines this morning.

Though CL and RB are both up nicely, perhaps finally getting a boost from this weekend’s OPEC+ meeting in Vienna. Expectations re an additional production cut are all over the map. The 10Y yield has risen, as have most other maturities.The 2s10s remains stuck at -78bps.

UPDATE: 1:00 PM

With the VIX-induced breakout above the green .886 retracements, we have to look at the white .618 target as the next most meaningful resistance. I’ve revised both SPX and ES to reflect this scenario.

VIX has now fallen over 5%, reaching levels not seen since July 2021.