Futures are flat this morning after coming within 0.25 of the Sep 2018 highs overnight.

The algo factors are generally bearish, but that hasn’t been enough to stop the meltup thus far.

continued for members…

The bigger picture for ES shows it remains on the precipice of a breakout.  Its 2.618 is way up at 3076 (3047.34 for SPX, so a big conflict.)

But, note that while VIX hasn’t broken out, it has not broken down.  This is neutral, but potential bearish for stocks unless it breaks below 12 again. USDJPY has clearly broken down, but remains above the SMA200 — a mixed bag from a bullishness perspective.

And, CL and RB continue to retract. The most concerning issue for bulls remains the 2s10s which at this moment, has broken out. SPX has been melting up so long that I don’t think bears will rush for the exits if it tops 2940.91.  In fact, we will see some very overdue selling come in if it’s taken as a marginal new high on a truncated 5th wave.A move above the Sep highs is technically bullish.  So, trend followers will be compelled to go/stay long with the former highs as their stop.Personally, I would be extremely cautious in chasing it, keeping an eye out for rejection and shorting it if/when it drops back through 2940.

Stay frosty.