Futures have broken out on a new VIX “breakdown” and the runup in NVDA shares – now the 4th largest component of the S&P500.This seems off to us, as Powell is likely to come out more hawkish than expected in his Jackson Hole comments.

continued for members…

The ES breakout… If the breakout can hold up, then it puts the .886 back in play around Sep 15, the next OPEX.  Needless it say, it is very rare for to see two “down” OPEX’s in a row.…is the direct result of VIX’s breakdown.

So far, it is outweighing DXY’s strength and a potential breakout. CL and RB continue to slide, with CL approaching its SMA200 and RB continuing to test its. Despite their weakness, TNX continues to inch higher – though the 2Y is now keeping pace, allowing 2s10s to stall.