Futures are slightly higher ahead of the open after tumbling as many as 49 points from Monday’s highs.This, despite a sharp rally in oil ahead of the holiday delayed EIA inventory report and a (barely) bearish cross in VIX. The algos are getting nervous.

continued for members… VIX is setting up another triangle, with the SMA10 and 20 only pennies apart. Keep an eye on CL and RB. A rally ahead of inventory data isn’t unusual, and the inventory/demand headlines have been negative lately.

While CL’s SMA10/20 remain in bearish alignment,  RB is flirting with a bullish cross.The 10Y continues to fall… …and 2s10s is on the brink of a breakdown… …bolstering the downside case for DXY and USDJPY.

more later…

UPDATE: 10:35 AM

While CL is (again) suggesting a breakout, RB has yet to rise above the falling white channel top. A reminder that the EIA inventory won’t be released until tomorrow due to the holiday on Monday.