Futures nailed our 4424 target overnight. Most will attribute it to Powell’s (completely unsurprising) resolve to support the economy the stock market. But, we know that the algos were spurred into action by VIX’s drop back into the falling channel from Mar 2020 and its dip below its 200-DMA.

Remember, it ain’t over till it’s over. Follow this headfake at your own peril.

continued for members…This is what VIX looked like when I started posting… …and this is what it looks like now. Its position relative to the channel top and SMA200 is everything.

Note that VX futures never did break down through the purple midline or SMA200 – suggesting that stocks won’t top the overnight highs. But, we’re definitely in headfake territory.The equity charts… All of our factors turned somewhat bullish overnight, but are now showing signs of fading. USDJPY is threatening a breakout, but it should tumble to meet the SMA200 in the next session or two. Gold and silver are still looking weak, with silver still in limbo (below 22 is shorting territory.) And, though BTC has bounced off its cloud bottom, it is backtesting the black channel midline. Watch your stops.Today is a travel day for me. I won’t get a chance to post again until tomorrow morning. GLTA.