VIX’s 10/20 cross held yesterday, meaning we almost got a lower low on the day. The overnight ramp job was good for 32 points before DXY started attracting attention. It has dropped below the falling trend line it was patiently following, meaning our forecasts in the currency space are accelerating – especially EURUSD and silver.

continued for members…

Depending on where DXY stops, we could see a pause or reversal at 30.73 on the way to 35.23. GC has obviously also broken out, though not as enthusiastically. DXY is closing in on our long-held 91.358 target which, if it doesn’t hold, would open up the .886 at 89.88. Note the drop through the falling red TL.

As we’ve discussed before, DXY’s continued slide means a breakout for EURUSD. The only thing which could potential offset it is a plunge in USDJPY, which would mean a downturn for equities. Keep an eye on the 10Y, which will likely break trend in the next day or two.

VIX seems determined to reach its SMA200… ….which should accommodate SPX’s 3393.52 backtest, ideally Friday afternoon.As mentioned yesterday, I’ll be on the road all day and unable to post. If anything significant happens, I’ll post later tonight.

GLTA.