The broader markets reversed sharply yesterday as soon as COMP reached our downside target – just below its 200-day moving average. Yet, the futures are having trouble moving back above their 50-day. Long a source of support, it is now overhead resistance. Tighten your seat belts.

continued for members…

Unless Powell says something in his reappointment hearing to eliminate the threat of inflation and higher interest rates, there is substantial downside still ahead.

VIX tested its SMA20 and SMA100 and is due for a bullish (bearish for stocks) 10/20 cross as early as tomorrow. Right now, the 10Y is inspiring fear as it breaks out.  This will unwind if the market craters fast and far enough. Otherwise, RB and CL continue to lead the 10Y higher. They shouldn’t break out, but the long, slow holding pattern and/or creeping higher will otherwise make it difficult for rates to subside. Likewise, USDJPY is getting enough of a bounce to move back above its SMA10. Yesterday’s drop through it was the first since Dec 20, when the bullish 10/20 cross occurred. EURUSD continues to coil. While frustratingly long in coming, we should see it unwind soon……with a commensurate pop in DXY. Gold and silver are still going sideways…

…and BTC is taking a breather before extending its decline.