Can anything derail the daily drip, drip, drip of higher prices? Just last week, we had a whiff — just a hint of a tiny pause. But, this morning, SPX is knocking at the door again – threatening a small breakout that will dash that scenario. I can hardly wait (sarc.)
Instead, we’ll turn our attention to the supporting cast in this drama: DXY, CL, USDJPY and, of course, VIX. I wonder (not really) if it’ll break trend to the downside again…
continued for members…
We go through the same thing every summer. My theory is that TPTB, which are off to the Hamptons or Martha’s Vineyard for a couple of weeks, leave very explicit instructions with their underlings to keep the rally on track at all costs. So, even when a small backtest is in order — as it currently is — it must be postponed until the Masters of the Universe are back. Just a theory…
Futures are up 2 points at the opening bell. If they can build on it just a bit, the falling white channel will be kaput and the rising purple channel can take over. We’ll see…
VIX continues to follow a falling channel which is roughly parallel to the red TL from June’s highs.
Even though DXY continues lower…. 
...the latest blip is higher.
And, CL continues to hold the line against what is likely a nice drop. Initial support is probably the SMA100 and white channel midline, followed by a more substantial drop.
USDJPY is helping out with propping action this morning. 
UPDATE: 1:33 PM
Another SPX “breakout”… 
…powered by VIX breaking trend. 