Futures are up over 0.65% even as VIX has popped 6.25% in the after hours.

What gives?

There’s actually a lot of reshuffling going on this morning, with important implications for currencies and equities.

continued for members…

First the overview…

The currencies are where the action is this morning.  USDJPY has broken down……which, combined with EURUSD’s weakness… …puts DXY in position to rally nicely.

GC and SI are confirming…

…as is BTC.This would be in keeping with the moves in the 10Y……which is struggling with its relationship with RB and CL.  Can they diverge?

Dollar strength has been a weight around the neck of equities all year. The only respites have been when the euro rallied – which has likely ended.  Throw in a drop in oil/gas as europe experiences a record-breaking winter heat wave and China pays the price for an explosion of COVID, and the macro background for equities isn’t good.

Still, there’s that DJIA breakout and impending backtest of its SMA200. I would be cautious in betting on the downside until the Dow breaks down.

I am still working on the 2022 year in review and forecast, and hope to have it completed by tomorrow.

GLTA.