In the absence of economic data, even as suspect as it’s been these past few months, today’s release of FOMC minutes takes on added importance.

Meanwhile, the Bank of England joined the chorus of those who have proclaimed the equity markets overpriced.

continued for members…

If we zoom out a bit, we’re offered a potentially better TL for support that suggests at least a little more downside.

Currencies are at an important juncture. EURUSD, USDJPY and DXY all suggest strong dollar strengthening – typically a negative for stocks.

CL and RB continue to bounce slightly as they run into TL and MA resistance.

This accentuates a conflict with TNX, which has tagged an overhead TL seven times in the past several months. It has pulled back every time so far.

If FOMC minutes and the Fed speakers (Powell on Thursday) reiterate that inflation is still too high (it is) then the market’s expectations of another 100 bps in rate cuts will come into question. If stagflation is mentioned a few times, look for a significant equity selloff.