Producer Prices for Final Demand in October jumped 0.6% MoM and 8.6% YoY (6.2% less food, energy and trade.)Futures were little changed… …though the 10Y slipped to a cycle low of 1.43%.

continued for members…

It’s still on breakdown watch.

The equity picture hasn’t changed one iota from yesterday. SPX looks like it’s ready to correct, though ES could still pop up to tag its 1.618 at 4728.

As noted yesterday, VIX experienced a 10/20 cross – a bearish development for stocks. We’ll be watching to see if it breaks out of the falling white channel and above its SMA200  at 19.18.  The fact that it hasn’t broken down in support of stocks is a very good sign for the bears. USDJPY continues to roll over. And EURUSD and DXY continue to go nowhere, both with a bearish tinge. GC tagged the gray channel bottom, a good potential turning point, with the purple neckline still a secondary target. I’d revert to short here with very tight stops. And, SI has gone nowhere, still just as vulnerable to a breakdown as a tag of the SMA200 at 25.46. I’d hazard a short position, but my conviction is quite low.CL nudged slightly higher, topping its SMA10 and SMA20 but not the purple channel bottom. While RB gets a backtest of its SMA10.Note that DJIA is still backing off this morning. While a backtest of the 3.618 as the SMA200 approaches still makes perfect sense… …note that a backtest of the red 1.272 at the white channel .786 would also be quite reasonable. It would amount to a 10.7% correction.Last, BTC pushed up to test the top of the rising yellow channel.  I still expect it to back off here, but would be happy to change my stance if it pushes through 68,600… …and/or the RSI breaks out.I will be on the road Thursday and Friday, but should be able to post first thing in the morning both days – particularly if stocks break down as expected.

Stay tuned…