Futures are up modestly this morning on weaker than expected housing starts – an issue the Fed can’t really do much about after having created the problem in the first place.

Note that ES reached our next downside target well ahead of schedule after yesterday’s head fake which likely shook more than a few bears’ confidence.

continued for members…

The rest of this morning’s charts show ES backtesting the Jan 2022 highs.

SPX has quite a ways to go, with the H&S target down at 5000 still some 64 points away and the Jan 2022 highs way down at 4818. Interesting that the SMA200 should arrive at 4818 in another month or so.

Currencies are fairly quiet with EURUSD still lingering at 106ish and USDJPY still edging toward 159.14. Oil and gas are still on pause.  Note that CL is testing a TL from the Mar 2022 highs… …while RB remains stuck in the vicinity of the highs of the last 18 months.Meanwhile, the 10Y looks likely to test 4.7%.GLTA