Yesterday, SPX reached our initial target and came up just short of our secondary before a convenient API report sent CL spiking higher.  The algorithms were in fine form, dragging SPX higher as well. From yesterday’s post:

Look for SPX to try to contain this morning’s losses to the channel bottom.  I expect new lows, with the SMA50 at 2076.59 and the SMA10 at 2072.28 as the next mostly likely targets.

USDJPY continued its streak of intraday ramp jobs.  And, again, it settled lower after the stock “market” closed.continued for members…The futures are relatively flat this morning, though that will likely change as several economic data points are revealed.

The key is likely to be EIA inventories at 10:30.  A positive report that backs up API’s large draw could take out yesterday’s highs.  But, remember that each and every EIA report over the past few months has marked a high for CL.  So, by all means, ride a spiking CL.  But, know that it’s likely to tumble the following morning as it did after the last report sent CL to 50.

My intermediate term outlook is still for a IH&S Pattern to set up over the next few days or even next week.  Though, yesterday’s breakout of the falling white channel puts a dent in that theory.  Note that past IH&S opportunities were rejected in favor of plain ol’ algo-driven ramp jobs.Bonus chart for those of you following gold…  GC broke out of a major channel last week, and drifted higher.  Our target range from April 8 was 1379-1380.  Yesterday’s 1377.50 was probably close enough.  If it can’t make new highs today, the next stop is back to the neckline at 1307.

I should have some time midday to update the charts.  GLTA.