No Pivot

September PCE held steady at 0.3% MoM and 6.2% YoY while personal spending came in hotter than expected. This should officially close the door on any speculation regarding a Fed pivot.

Coming after disappointing earnings and guidance from the largest, most important corporations, one might expect at least a slight decline in the markets. One would be wrong. Futures are back to flat as we approach the open because VIX-driven algos are still in charge and VIX has been driven lower.

VIX futures have been playing cat and mouse with their SMA200 since yesterday…

…and the index will join in shortly.This pattern has been playing out daily since Oct 13, when VIX’s breakdown stopped stocks’ decline in their tracks.

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