The algos were back at it yesterday, pumping stocks higher via VIX and the USDJPY.  Note that VIX dropped back to the TL which it broke below in August.

This brought ES within striking distance of a backtest of its latest H&S Pattern just in time for next week’s CPI data to drop.continued for members…There are two nice-looking scenarios for the downside case, with the first being in October following a downturn which begins either today or Monday. For new folks, understand that this is a well-honed process: ramp stocks higher in the days (lately, weeks) leading up to a bearish news release so the resulting pain isn’t as great.

This would be contingent upon COMP doing an about face here at the SMA100 – around 12,000. It would also be contingent on VIX not breaking down any further. Note that USDJPY appears to be backing off its overshoot – though it hasn’t yet broken down.

Even BTC appears to be backtesting prior to proceeding lower.And, GC and SI are still floundering.  Honestly, if they can’t make any headway while inflation is shooting higher why should we expect them to do well when it stabilizes or drops?

The bounces off support CL and RB are enjoying… …are creating problems for the 10Y again. I suspect the 1,000 pt drop in COMP over the next few weeks will help curb TNX’s urge to break out.

Though, if VIX can be driven below 22.34ish, all bearish bets are off for the time being.

GLTA…