Futures are off moderately this morning in keeping with the algo signals we’ve been watching.

It remains to be seen whether the gentle flag pattern exhibited over the past week can hold past OPEX.

continued for members…The bigger picture shows the important trend lines that should be tested again soon – perhaps today. Although I show the gray Fib grid from 3852.50 on Jan 4, I prefer the red one from  3596 on Dec 21. Its 1.618 extension lines up almost exactly with the white .618 at 3454.63. These “coincidences” often pay off nicely.

It’s all about trying to preserve SPX’s latest breakout above the dashed red TL. The last time it broke out in Nov 2019, it failed miserably a few months later.

This breakout has been build on higher interest rates, a strong recovery in oil and gas prices, periodic bumps in USDJPY, an extended plunge in DXY, and of course constant hammering of volatility.Note that VIX’s bullish 10/20 cross is not only holding, but expanding.Cracks are starting to appear in CL’s and RB’s facades.  I will continue that post from yesterday shortly. An important test for DXY: a potential bullish 10/20 cross. As EURUSD continues slumping……and USDJPY holds fairly steady after not breaking out again.