After feeling like the lone inflation alarmist for the past few months, I find myself in the midst of a growing chorus which now recognizes the Fed’s conundrum. Building inflationary pressures are now obvious to all.

What isn’t clear is whether the Fed’s nonchalance re rising rates is real or feigned. And, if feigned, at what point will they throw in the towel on the sales pitch that rising rates are great?

Futures are back below yesterday’s lows and small H&S patterns have formed on both ES and VIX.

continued for members…SPX has about 27 points to go before losing its SMA10.

VIX’s H&S is inverted and points to a rise of at least another few points if the neckline holds.DXY is dropping after its backtest, but has held the big white channel midline so far.

EURUSD argues for more dollar strengthening… …while we await USDJPY’s SMA200 backtest.GC and SI are still under pressure. If you didn’t know any better, you’d think inflation was dead and buried. With EIA inventories coming out today (11am due to the holiday schedule), it will be interesting to see if CL and RBOB have made the usual pre-release ramps or they have enough staying power to last through the month.

Before I forget to mention it, I’m am having more shoulder surgery on Monday and, depending on the scheduling (yet to be set), might be unable to post.

I’m going to spend the next few hours on conference calls and updating the inflation charts.

more later…