Futures were down nearly 1% overnight…

…until VIX got hammered below its SMA200 yet again.

VIX first dove below its SMA200 over a month ago and has been dipping below it on cue any time stocks start to wobble. It’s not a coincidence.

It leaves plenty of doubt re a meaningful backtest. The targets are clear.

Also still being managed: oil and gas.

The bond market should have reacted when CPI or PPI was released, but was aptly supported by the Fed until Friday, when rates soared. It remains to be seen whether they can engineer a breakdown in WTI which would clearly help reduce rates.

There’s increasing talk about a Fed rate hike. But, obviously, the market is already doing that for them.

One thing that typically drives rates lower is a strong equity correction. Another is a strong DXY, which would also help with inflation.