Futures are higher ahead of the open on a slight increase in interest rates and the usual algo-baiting such as USDJPY’s latest bounce.

continued for members…

The latest bounce off support in the 10Y…The original flag pattern broke down, but the rising white TL is holding for now.

On the other hand, so is ZN’s support – which still portends a plunge in rates. For now, though, the 2s10s is again in backtest mode.ES and SPX have held their latest rising TLs so well that the assistance should be patently obvious to all. Note ES’ triangle pattern ever since reversing at its .886.

I will continue to post the more obvious downside targets in the belief that we will get a breakdown. For traders and hedgers, the line in the sand remains the rising red TL. VIX has yet to complete the bullish 10/20 cross, with most of the SMAs running exactly parallel to one another.Despite its latest bounce, USDJPY is still looking weak on a daily chart…getting just enough air to maintain NKD’s rising wedge. Most of DXY’s continuing weakness……is coming from EURUSD’s refusal to break down.The USD weakness is giving a slight lift to GC and SI – close, but still not enough to register an official breakout.

CL and RB are similarly still playing things very close to the vest – still working on extended triangle patterns that neither break down nor break out. more later…

UPDATE:  2:55 PM

ES has just about reached its IH&S backtest target of 3420ish. Bulls need a stick save here or the IH&S is busted.

UPDATE:  4:20 PM

ES’s neckline was tested, but ultimately held (so far.) At this hour, the stimulus talks between Pelosi and Mnuchin haven’t borne any fruit. Even if they do, there’s the not so minor task of getting any agreement through the Senate.