Futures are modestly higher despite VIX being crushed by a ridiculous 8%. It’s gotten to the point where there’s not even any effort to mask the obvious manipulation.

continued for members…

We have to go to the VX futures to see the true state of affairs – a backtest of the large falling purple channel from Jan 2022. This isn’t to say that the channel won’t be violated again, like it was starting on May 12.

Members will recall that Monday, May 12 was the day that Scott Bessent went on CNBC (before the open, of course) to surprise markets with the news that tariffs on China would be slashed from 125% to 10%.

VIX plunged 17% (back below its 200-day moving average of course) and SPX soared 3.25%, gapping back above its 200-day moving average. This followed the FOMC decision on May 7 not to cut interest rates. It should come as no surprise that the meeting with the Chinese was announced on (drumroll please) May 7 as SPX was pulling back from its .618 Fibonacci level.

We’ll be doing a little site maintenance over the next few days, but this situation was too absurd not to mention.

Wishing everyone a wonderful Thanksgiving holiday!