Futures are off moderately as concerns mount over hostilities in the Middle East.

Fed Governor Christopher Waller will speak at the Brookings Institution at 11am ET. The event can be seen online HERE.

continued for members…

The question remains: was ES’ IH&S backtest enough or will SPX get its as well?

Note that the SMA10 has crossed below the SMA20, but there hasn’t been much follow through just yet. I think the algos are confused.

Note that VIX has gapped back above its SMA10, 20 and 50 and is approaching levels not seen since November.EURUSD is backtesting its SMA200, as expected. A drop through the moving average would spell additional downside for stocks.

Despite the fighting between Iran and Iraq, oil prices are barely higher – though gasoline prices have risen 2%.

10Y yields are up slightly, still hovering around 4%.No one’s talking about it, but the drop in 2Y yields has put additional upside pressure on the 2s10s. Remember, breakouts pose a threat to stock prices.  A rise above the October “highs” of -13 bps would count. A rise back to positive values could be positively seismic.

GLTA