Futures ramped higher overnight, continuing to dance to the tune of VIX’s smackdown and ongoing rumors of a fiscal stimulus deal…

…and ignoring troubling pandemic facts.

But, we’re finally into October and Q4. And, as we discussed yesterday, things are about to get very interesting.

continued for members…

The overnight ramp helped ES flesh out its falling white channel but shouldn’t be so much as to break SPX out of its.

CL and RB have reversed their nonsensical rallies… …though VIX is still a very real threat to the bear case. USDJPY is also.

It continues to hang on to its backtest.While DXY is drifting lower… …as is reflected in EURUSD.

Gold and silver continue to try to make headway – with SI struggling to hold support……and GC poking back above the red midline after getting a decent bounce off the purple midline and SMA100. A close above the SMA10 would give it a shot at regaining 1923 – important resistance. 10Y yields surprised to the upside yesterday, shooting up past and backtesting resistance and gapping higher this morning.

This puts the 2s10s back at 57 bps, near the upper bound of a TL backtest.

more later…

UPDATE:  3:25 PM

I was hoping something – anything! – might happen to break the logjam today. We’re currently sitting with gains in ES, SPX and VIX. Go figure.

It’s hard to forecast when things sit at the brink of a breakout and a breakdown day after day. My gut tells me we’re in for a big downdraft culminating (at least the next leg) next Friday, Oct 8.  But, again, it’s hard to say when ramp jobs are so prevalent.

Signing off for the day…