It’s unusual for stocks to sell off in the lead up to an FOMC meeting. Its also unusual for a bearish pattern such as a Head and Shoulders pattern to complete during those days.  Yet, here we are.

As has been the case since late August, the only thing preventing a severe downturn (aside from the hope that the Fed will suddenly change course and be less hawkish) is VIX – which keeps getting smacked down every time it reaches 27-28.

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The equity picture:

Currencies are pretty much where they were yesterday, with USDJPY still broken down but above the 1.618, EURUSD clinging to parity, and DXY running in place.

GC and SI are both off, but no new lows yet.

Likewise for CL and RB.

The 10Y could care less. Running in place won’t do anything to bring CPI back down or convince the Fed to not raise rates tomorrow. TNX’s H&S Pattern is officially kaput as yields make new highs.