Things continue to go pretty much as planned, though there are a few currency-related bumps in the road just ahead.

DX, having reached our year-end target yesterday, is reversing.  Whether it will amount to something meaningful or is just a head fake remains to be seen.

USDJPY has clearly lost a little momentum in the short-run, giving up the purple channel and stalling at the white channel midline (remember, USDJPY has frequently ignored the rules of channels and chart patterns lately.)

Even EURUSD is on the rise, after pushing below our year-end target.

On the bullish front, VIX continues to slide…

…and 10-yr yields continue to rally.

The net effect is a rising channel for SPX that, as we’ve pointed out before, looks more and more like the mid-October melt up.  Prices could continue to rise even as momentum fizzles and the initial channel’s relevance fades.

For now, we’ll consider the purple channel legit, and watch to see if prices can remain in this uptrend for the holiday-shortened session (1pm EST.)

My expectation is that we’ll get a small sell-off somewhere along the way — perhaps as early as at the close today — just to shake out the weak bulls and set the stage for the last leg.  An obvious initial target would be to close yesterday’s gap at 2078.73.