Futures are up sharply… …as VIX is being crushed in order to provide cover for about $2 trillion in options expiring today.

We’ve been seeing this all week, with multiple downturns reversed by late-session assaults on VIX even as earnings and economic data have argued for lower stock prices. Chase this rally at your own peril.

continued for members…

It’s a difficult ride for bears betting on a sharp selloff next week.

USDJPY is still poised to reverse, while EURUSD is still faltering.

Oil and gas are getting a stock-supporting bounce on the way lower… …which is propping up the 10Y for now. Stay tuned…

UPDATE: EOD

It’s not easy to remain bearish on a day like today. But, then again, that’s the whole point of day’s like today: to convince bears to give up their shorts/puts and bet instead on a rally. Note the falling purple channels are very well defined for both ES and SPX.

Have a great weekend everyone.