Yesterday’s near-breakout was tempered by a failure of VIX to break down. The indecision carried over to this morning, where VIX remains in a consolidation pattern that promises a significant move — one way or the other.
The major indices are essentially in a holding pattern, which typically indicates a sell-off lies ahead. Our yield curve indicator is singing the same tune.
continued for members…
ES is up about 5 points just ahead of the open. Though the flag pattern seems to be yielding to the upside, VIX hasn’t yet confirmed this.
SPX – still within striking distance of a breakout or breakdown.
The dollar continues to look like it’s overdue for a reversal.
The big question remains whether oil and gas will break down in time to relieve inflation pressure for May. As CL has finally reached the yellow channel line and is spitting distance from the purple midline, I’d try reverting to short here. Shorts, of course.
COMP continues to not break out at all. But, if it does, there’s a clear reversal point at 7542.50.
UPDATE: 12:09 PM
The waiting game continues…
I’m going to duck out for the afternoon, will post later this evening if anything dramatic happens.
