A subtle shift is occurring in the currency markets. As expected, DXY has broken out after finally reversing at our 89.50-89.92 target. This comes as USDJPY is sneaking up on our 200-DMA target and EURUSD has almost reached our 100-DMA target. Once all these pieces slide into place, what then? continued for members… … continue reading →
Futures melted up again overnight, reaching the .886 retracement of the late January swoon. Stocks have been well supported the past three sessions – not by fundamentals, but by a 37% hammering of VIX, an engineered surge in oil and gas futures, and the obligatory breakout in USDJPY.In other words, it’s the same algo nonsense … continue reading →
Silver, GME and AMC are all tumbling this morning as equity futures are responding to dramatic moves in VIX, oil and currencies. In short, things are getting back to normal. Or are they? What if this was merely a backtest on steroids to stave off the bearish 10/20 SMA cross which would otherwise have occurred?ES … continue reading →
The flustercluck continues. As we discussed last week, silver is the new shiny object for the Reddit short-busters. This morning SI decisively confirmed its channel breakout, topping the August 7 highs and forsaking the opportunity to backtest its 200-DMA. Unfortunately for gold bugs, GC has not tagged along. As SI closes in on our Nov … continue reading →
I can’t remember a time in the last 40 years when the market was turned on its head like this. Not surprisingly, futures have been all over the map as bulls and bears try to establish beachheads and central bankers try to figure out who the good guys and the bad guys are – and … continue reading →
ES tagged our downside target yesterday, taking the opportunity to bag the 50 DMA in addition to the 1.272 Fib extension. We should get a bounce here as the algos are all swinging into action. USDJPY has broken out as expected, CL/RB are inching higher, and VIX is getting smacked down. However, the bounce might … continue reading →
Futures are off sharply again this morning as VIX spiked to our 27.67 target a day ahead of schedule. Remember Run, Don’t Walk to the Nearest Exit? That post was headlined by RSP, the equal-weighted S&P 500 ETF. It never did break out, but will instead gap lower on the open with a slew of … continue reading →
After nailing Friday’s downside target, ES made another “miraculous” recovery and is pushing toward new, all-time highs. Move along, nothing to see here… It will come as no surprise to members that the latest recovery was almost entirely driven by another collapse in VIX. The other factors: more silliness from oil/gas and a healthy dose … continue reading →
In Friday’s post VIX: Back From the Dead we noted that VIX had recovered from the breakdown below trend dating back to Nov 27. This morning, it’s testing overhead resistance from Jan 4 and, if it’s able to break through, will likely take on resistance from Dec 21 or even Oct 29. Bears might want … continue reading →
The biggest charting development overnight was VIX’s resurrection. Breaking down below its channel bottom dating back to Nov 27 drove stocks to new highs. Will rising back above it bring stocks back down to earth? continued for members… … continue reading →