Futures are off slightly on a low volume Monday following what should have been a bigger reaction to the latest PPI data that was off the charts.

Either bond traders all took Friday off, or it would appear that the Fed has taken “supporting” the markets to new heights.

Markets will have another chance to react this morning…unless, of course, VIX futures fail to react to the obvious support.continued for members…The meltup seems destined to continue, despite ES’ rising wedge breaking down… …and VIX’s falling wedge breaking out.The big picture for ES and SPX…

While ES hasn’t a similar pattern, SPX is on the verge of breaking out of the rising yellow channel.  This would be a major development for SPX and would be a major defeat for the bears.The alternative is that it could be the sort of “bending” of the channel top that we saw in Jan 2018.USDJPY is still supporting higher prices – though very subtly, by virtue of the bounce it got on Friday and the very cautious decline to the lower red TL. More importantly, the recent breakout of the falling purple channel hasn’t broken down.

EURUSD and DXY remain neutral.

Oil and gas continue to hold up – throwing cold water (so far) on my expectation that the Fed would manipulate them lower in order to avert a huge CPI print for April. If the Fed is convinced that it can hold interest rates in check despite 3.0-3.5% CPI — and, after Friday’s performance, I’m beginning to wonder if they can — then what’s the incentive for crashing oil/gas prices?

This was a stunningly muted reaction to the PPI data. I can only surmise that much of that $120 billion in bond purchases was concentrated at the time of the data’s release.

Gold and Silver reacted the same – as though inflation risk weren’t even a consideration. As has been its pattern for the past couple of years, GC moved in sync with ZN.

Bitcoin, on the other hand, continues to act as though inflation is out of control. It has held to the upper half of the rising pink channel. Apparently one backtest of the 2.618 extension was enough… …and the 3.618 extension at 62,977 remains the most likely upside target – sooner or later.

There’s a $38B auction of 10Y coming up at 1pm today, should be interesting…