Futures are off moderately ahead of delayed economic data due out later this week. Friday’s knee-jerk rally took SPX to 7,000, so a pullback back below the SMA50 would be significant.

Note that a pullback to the SMA200 will soon be able to occur without producing a lower low.

As we noted last week, the bulls need VX back below that TL and its SMA200. It remains on the bubble this morning.

Another measure on the bubble: DXY.

With EURUSD reaching out 1.20 target and interest rates still rising, it has an important decision to make.

In Japan, the Liberal Democratic Party won by huge margins – a mandate for Takaichi and her expansionary fiscal policy agenda and large investments in “national champions.” The resulting rise in interest rates has halted the USDJPY’s recent rally, at least for now.

In the US, the divergence between the DXY and the 10Y continues.

Tech, software and the effects of AI on the Mag 7 continue to present significant risks to the market.

Stay tuned…