VIX did something this morning it hasn’t done since mid-October: gap above its 10-DMA.  The last time it did this, SPX promptly dropped 250 points.Of course, every time VIX acts up, it’s promptly slapped back down. But, this time it happened at the 20-DMA. Could this latest move be different?

continued for members…ES has reached its red 1.272 but not its white one.

SPX came within 21 points of its on Friday. Meanwhile, 2s10s is making new highs in its breakout – a bearish development per our yield curve model.

ZN continues to flirt with a breakdown… …while TNX made a higher high before backing off.Oil and gas are off a little, though not enough to panic anyone just yet.  It would be a different matter if they were to drop through their SMA10s. And, DXY backtested its white channel midline, putting in a bearish candle not far from its .886.While USDJPY continues to loiter near a breakdown without actually doing it… …because EURUSD is currently driving DXY. It tagged its .786, with the better target at its .886 still a viable option.

UPDATE:  2:30 PM

It shouldn’t come as too great a surprise that ES found support at (actually a little above) its red TL and SMA15 200.VIX is still slipping lower, with a potential test of its SMA10 before long. TNX backed off its new highs, with another test of its channel bottom coming up. CL is still faltering a bit, but not enough to matter yet. Note that GC and SI have reached their backtest targets. It still appears as though the DXY decline is being handled very cautiously, with a bounce still coming at 89.88ish – the better to protect stocks into YE.