Three sessions after SPX completed its Golden Cross, the NASDAQ Composite is set to join it.

Stocks continue to benefit from algos keying off of VIX, which has reached our next downside target… …and, USDJPY, which threatened a breakout from the falling white channel. As a result, ES popped through the last Fib resistance standing in its way from reaching new highs.Of course, there are other considerations.

continued for members…If VIX bounces here instead of melting down below the large white channel bottom (or TL, depending on your POV) then new highs will have to wait.SPX will certainly join ES in topping its .886, but the previous high is still some distance away.

CL and RB are in supportive mode at this time, though CL is pushing to new highs (with its .618 just above at 63.71) and RB is merely extending its backtest.  EIA inventory is coming out at 10:30.  Though, with SPX is such a precarious position, don’t look for a rapid decline. On the currency front, EURUSD remains in a holding pattern, still preventing DXY from reaching its .618. Bonds have been supportive of stocks the past few days, with TNX finally officially closing its gap from Mar 21.

Bottom line, the algo factors have done just enough to push through SPX and ES’s .886s.  COMP’s .886 at 7911.78 is the next bogey, and is arguably just as important.

While SPX’s push thgouth 2873.16 is cause to abandon bearish trades, we should be wary of bull traps and be ready to re-short on any drop back through it.

UPDATE:  10:40 AM

COMP just pushed through its .886 moments before the EIA report was released.  Crude inventory came in at a huge 7.2MM barrel build vs the -800K draw expected.  RB posted a 1.8MM barrel draw.

CL and RB initially sold off, with CL backtesting the channel top and RB a TL from recent lows.SPX already backtested its .886, so it’ll be interesting to see if it falters, especially after the miss in PMI.COMP is barely above its .886. If we’re going to get further gains out of stocks, it’ll likely be up to USDJPY……or VIX.Bottom line — I’m still as bearish as ever…but, cautious types might want to wait until SPX drops back through its .886.