One of the more effective factors in prompting algos to buy stocks is the price of oil. Yet, as we’ve been discussing, higher oil prices are a double-edged sword as they can drive inflation to levels which prompt uncomfortably high interest rates.

Thus, even though the latest 3-D chess moves out of the White House have driven oil prices 2.5% higher overnight, S&P 500 futures are off 10 points.

continued for members…

For now, SPX and ES are getting SMA10 backtests.  But, the potential is there for a deeper drop – especially as SPX has failed to get the push necessary for new highs.

As was the case all last week, VIX deserves the most attention.Currencies are mixed this morning, with DXY having approached but failed to tag its .618 for the zillionth time and EURUSD failing to break down or backtest its SMA200.  USDJPY continues to levitate, but not necessarily break out.

The oil and gas picture shows RB and CL have both run out of room.  It’s time to short again. And, the interest rate situation:

I must reboot my computers for a few minutes due to a few technical issues.  Back in a few…UPDATE:  3:25 PM

Pretty useless day…with ES/SPX getting just enough help to stay above their SMA10s.  Still, VIX is trending higher…… even though it has given up most of its pre-open ramp.GC is very very close to our next downside target. Currencies have gone nowhere.  EURUSD and USDJPY continue to go nowhere……following USDJPY’s “breakout” from last week.Aside from VIX’s 10% rally deflating to only 3% this afternoon, CL and RB are pretty much all the action we’ve seen today. Again…just enough to cling to the SMA10s.