Futures are off slightly as we enter a week with more questions than answers about the dangers which lie ahead.continued for members…

Currencies are still acting a little uncertain about supporting equities at this juncture. USDJPY has reversed at a minor TL, but has plenty of support below here.

While EURUSD is bouncing on the red channel top… …sending DXY down to backtest the white flag pattern. GC hasn’t broken out of the falling red channel… …though SI is making a valiant effort.There’s no doubt about oil and gas’ intentions this morning. Both are breaking out – CL to new highs and RB above a TL from recent highs. Given the previous strong correlation between CL and TNX, this begs the question “which way for interest rates?” I expect rates to continue to decline, although the inflation picture would argue otherwise, as falling equity prices propel the flow of funds into bonds.

UPDATE:  12:54 PM

In looking at SPY, the H&S target is 403, about a 11.2% drop from the top. The 1.618 Fib is at 413.75, a 8.8% drop.