It’s finally here, and things are no more clear than they were the last time. Markets have been pumped to the point of a golden cross…

…via the usual nonsense: a relentless hammering of VIX……and DXY……and the 10Y, which should finally backtest its 200-day MA.

The markets behave as though the Fed has turned dovish and there’s no chance of a recession – earnings or otherwise.  But, we know it’s just the algos talking.

Will they be able to keep the plates spinning after Powell’s press conference? Can the FOMC really be comfortable with very loose financial conditions?

continued for members…

If the breakout holds, TPTB will have engineered the end of the downward cycle pattern we’ve seen over the past year.

The cycle suggests a low around Feb 8 – only one week from today.  Obviously, the bears have their work cut out for them.

One way or another, currencies’ logjam should be broken today.  The bulls would have you believe the euro is heading higher and the DXY is heading lower. The same thing has happened to GC and SI – both supposedly chomping at the bit to go much higher. Ditto for the usual BTC nonsense. With oil and gas, at least there’s a reasonable fundamental argument to be made for a rebound. Though a strong selloff would likely drive yields through the SMA200 and a failure to sell off would likely mean it holds.