The market reminds us of the line from Hemingway’s The Sun Also Rises: “gradually, and then suddenly.”

Futures are flat following yesterday’s horrid performance as the government shutdown becomes the longest ever. We also just heard that the nation’s airspace could be closed over Thanksgiving due to a lack of air traffic controllers. And, Trump’s “mandate” is now clearly in question as virtually every important election was won by Democrats. All this, on top of news that Michael Burry had in effect shorted $115 billion of notional on some of the Street’s highest priced darlings.

continued for members…

There’s still time for a rebound, but ES needs to regain the channel breakout right away.

VIX made it above the SMA200 for just a bit before being slammed yet again, but it has joined VX in breaking out of its falling purple channel.  Moment of truth for vol.

Currencies are little changed which is to say there’s a lot of USD selling going on.

And, though CL and RB continue to back off their trend lines…

…TNX is inching higher. It didn’t help that ADP reported decent employment data, stealing some of the bulls’ rate cut thunder.

For those curious about Burry’s reasoning, here are the troubling images from a related X post with the comment: “These aren’t the charts you are looking for. You can go about your business.”

Stay tuned…