Futures are up a few points on lower lows in VIX and a partial recovery in oil prices.Traders will no doubt be considering the repercussions of Harvey.  The expected impact on gasoline production has sent RBOB higher by as much as 12.7% in the last four sessions.

While, oil prices fell up to 1% overnight, testing the bottom of a rising channel for the 7th time since June.  Time is running out for the channel to break down in August.

continued for members…

I’m still looking for a breakdown, though the spike in gas prices may have sealed the CPI deal for August.  ES is currently 3-4 points higher — meaning another backtest of the broken white channel.While DXY continues to tumble.

SPX broke down at the end of the session, but the latest ramp job should see the rising white channel recover.

As we discussed Friday, these late-session channel breakdowns have recovered over and over again via overnight ramp jobs.  It hasn’t taken too much effort. And, it has enabled SPX to withstand the continuing DXY and CL weakness without ill effect.

The SMA10 continues to be the line in the sand.  Today, it also marks the bottom of the rising white channel — which makes things easy: stay long above the SMA10 and short below it.This will likely be my only post today, as I’m delivering darling daughter #2 to college.  It promises to be a day of very mixed emotions: the excitement of the “launch” along with a wistful reflection on the closing of one chapter and the opening of the next.

GLTA.