As we expected, PPI soared in October — reaching 2.8% largely on increases in fuel prices.  Note that this is higher than it’s been since March 2012. Interestingly, the data did nothing to help DXY, whose rising channel broke down last night.

continued for members…ES had already slipped quite a bit on the dollar weakness, which came mostly as a result of EUR appreciation.This leaves both ES and SPX with another shot at our 2533/2536 targets.

Needless to say, USDJPY is off. And, RB and CL are finally showing real weakness.  Have traders finally realized that their rallies were not only phony, but problematic?  It doesn’t hurt that the EIA puked all over OPEC’s recent rosy forecast.

RB should test the channel bottom around 1.7.  If that fails, the next support is the SMA50 at 1.63.CL still has quite a ways to go, lest November’s numbers blow October’s out of the water. I’m not quite ready to pull the plug on our long, but would if it plunges below 55.

Just to make things even crazier, GC is down on the dollar’s weakness.

UPDATE:  10:09 AM

This isn’t buying pressure coming into the “market.”  This is just plain manipulation.  Someone pounded VIX just as it was about to reach our 12.72 target, enabling SPX to bounce before making a lower low.Why was it so important to prevent it?