Stocks were up sharply on Friday……as VIX plumbed new 2-year lows.

continued for members…This puts SPX and ES very close to their next overhead resistance levels – the .618 Fib retracements from all-time highs in Jan 2022.

Currencies have been upside down lately, with stocks diverging from EURUSD and DXY as USDJPY propels NKD to new all-time highs.

CL and RB continue their bounces on news that the Saudis will reduce their output by 1MM BPD and OPEC+ will extend their latest production cut through 2024. As Al Jazeera notes, however, the cuts are more than offset by increases by Russia, Nigeria and Angola.

In other words, this is another effort to prop up prices in the face of questionable fundamentals.  CL, RB and XLE face important tests at their SMA50s. And, importantly, XLE has recovered to back above its neckline.

Needless to say, the positive jobs report on Friday combined with oil/gas gains has pushed the 10Y higher. But, PMI data comes out at 10am, so stay tuned…