Stocks did all they could, yesterday, to project renewed strength.  But, despite gaining 23 points, SPX didn’t break out of the falling channel it’s been in for a month.  Neither it nor ES were able to clear the neckline of their IH&S Patterns.  And, though DJIA finally closed above its 200-day moving average, it was by 3 points, literally in the final 10 seconds of trading.

Toss in the fact that RB, CL, USDJPY and DXY are all sliding, and VIX remains above horizontal support, and you get the feeling stocks aren’t ready to commit to higher prices.

It’s the same sense I get when I read the Fed minutes.  Things are going so great that they need to raise interest rates twice more.  But, they can’t shake the feeling that a recession is just around the corner.  So, they’ll probably stop hiking soon — coincidentally, right about the time the yield curve (as a result of their hikes) would otherwise invert.

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