Charts I’m Watching: Dec 1, 2021

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The algos have been busy overnight again, driving futures up 50+ points as we head into the open. Omicron shutdowns, botched responses and Powell’s admission that the Fed might accelerate the taper seem to have been forgotten.

ES came close to our next downside target, but whiffed. Is the correction over?

continued for members…

It’s hard to believe, as ES didn’t even reach its SMA50 yet and just experienced a bearish 10/20 cross.

SPX, with a much smaller cross, made it to the bottom of its falling white channel. ES is responding primarily to VIX’s decline… …and breakdown. But USDJPY is still selling off – something you rarely see when stocks are in a protracted rebound.EURUSD is backing off its backtest of its SMA20. This has enabled DXY to hold an internal TL – bearish. GC is bouncing this morning, but has yet to climb back above its SMA200. And SI continues its drip, drip, drip lower.CL reached our .886 target yesterday and has bounced back to its white channel midline. But it’s still in bear market territory and below its SMA200. Until this situation changes, it remains a bearish signal. And NG, which we updated yesterday, is ripping the bandaid off – obviously intent on reaching its SMA200 even faster than I anticipated.

TNX is still holding the white channel midline, but the red channel remains broken and yields are still hovering in the 1.45 range.I believe the purpose of this morning’s pop is to buy time. Time for DJIA’s SMA200 to reach its 3.618…

Time for ES’ SMA50 to reach its 4549.50 former highs and for its SMA200 to reach its purple channel bottom and .886 at 4314.78……and, most importantly, time for the market to catch its breath before another round of testimony from the Powell/Yellen brain trust.

UPDATE: 3:50 PM

SPX and ES have tagged their SMA50s, a level that could provide support. Though VIX and VX say it might not yet be over.Note DJI’s plunge through its SMA200.