Yellen said all the right things yesterday to keep the algos on track, taking out the previous highs and seemingly on track toward new all-time highs.

USDJPY continues to inch higher. But, CL has run into resistance once again — in the same manner that delayed new highs last week.  Which to believe?

continued for members…Note it’s back at the white channel top, and is backtesting the purple channel midline.

CL’s purple channel has been the primary driver of higher equity prices ever since our Feb 11 bottom call.Note that ES also backtested the bottom of the purple acceleration channel that broke down on Jun 3.While, SPX shows an alternative purple channel higher that can easily get prices up to the 2134 or 2138 highs within the coming week — as long as CL cooperates.A close up of CL v ES shows just how tightly the two have been intertwined over the past few weeks.  While the white channel’s rise has been gentle compared to the steep purple channel, CL’s daily rallies have been timed well enough (purple shading) to keep stocks on the rise during market hours.If CL can break out of the white channel and above the purple midline, then new SPX highs should be just around the corner.  If not, then we’ll have to wait a little longer.  The obvious breakout moment would be the Fed’s decision to hold off on a rate rise next week.  The meeting begins on the 14th and concludes with an announcement and press conference on the 15th.

If yesterday’s speech is any indication, Yellen will praise the economy’s resilience, but pronounce it not ready for a second rate increase.  The recent employment report should provide all the cover that’s necessary to postpone.

The cues today, then, are: (1) whether CL can break out of the white channel versus breaking down below the red TL; and, (2) whether USDJPY can hold the rising white channel.  At the moment, it’s questionable.

NKD’s rally off last week’s lows is in need of a rest.I would put today’s SPX target at the 1.618 at 2116.78, also the top of the little megaphone pattern.  If it breaks out, the next upside target is 2128.86, which is also the top of the (ever so slightly) falling purple channel from the 2134 highs in May 2015.

I’ll be returning home later this afternoon, and will update some of the other charts worth watching, as well as resuming intraday commentary.

GLTA.