As we discussed last week, VIX is at the threshold of what would be a major break in trend. Every such past setup in which VIX broke down resulted in stocks breaking out above important overhead resistance.
S&P futures are up 10 points and are now only about 27 points from all-time highs — the result of VIX being hammered to new lows after rallying nearly 10% yesterday.
ES’s rising channel from December, kicked off by a meeting of the Plunge Protection Team, broke down two weeks ago. But, it hasn’t mattered. ES continues to melt up, guided by an overhead trend line which will intersect 2947 around Apr 26. Only if VIX bounces strongly will stocks avoid new highs.
As for earnings and economic data, the algos could care less lately.
continued for members…If it were only VIX at work, the bears might have a chance. But, USDJPY and CL have also been hard at work driving the algos to buy-buy-buy. CL broke out of its rising channel and popped up through its SMA200 with no hint of a backtest.
And, USDJPY broke out of its falling white channel and above its SMA200. 
I have speculated that this feels a lot like mid-2015. Lately, however, it feels more like late 2013 or early 2014, when VIX, USDJPY and CL all conspired to drive SPX up through the 1.272 Fib at 1823.
There is still a possibility that we’re facing a head fake. We won’t know until SPX reaches 2940.91.
SPX still has a gap to close at 2895.95 and another at 2836.03. It only needs about 3 points per day to reach 2940 by the end of the month. So, don’t be shocked if we get some pullbacks along the way. 
And, the potential for a bigger drop has not gone away, particularly as speculators pile into long vol positions.
UPDATE: 12:40 PM
For those trading gold, note that it is approaching our next downside target – the channel line currently around 1271. If the channel line doesn’t hold, the next support is the SMA200 currently at 1253.10.
SPX/ES have backed off their overnight ramp and are likely to break down before the end of the day – to tag the gap or the SMA10s. But, keep an eye on VIX — which is still threatening to break down.
