Last night’s ramp job is brought to you by the usual suspects: VIX, CL and USDJPY. VIX made a new low, of course, while CL pushed up to prices not seen since Oct 10, 2018, and USDJPY broke out to new highs. The Fed might be further and further up a creek with a growing chorus of critics lining the banks, but the algos could care less.

Speaking of the Fed’s creek, note that 2s10s just reached our backtest target.  Will it matter?continued for members…

The big picture shows the stall continuing – basically a repeat of the May pattern (the falling red channel) but with a much deeper second dip.

VIX’s once-clear path to its SMA200 has officially broken down, raising the possibility of a backtest. But, the bullish 10/20 cross is barely hanging on. We could see a bearish (bullish for stocks) cross unless VIX gets back above 17.30 quickly. The purple target was added quite a while ago, almost as a cynical afterthought. Not any more. USDJPY’s breakout to new highs officially opens up the door to those upside targets.While EURUSD, DXY and the metals remain on hold. Gold is getting a slightly premature bounce to backtest its SMA100.While SI’s SMA200 has held and is providing a decent little bounce. continuing…