It’s now been five days since futures bounced out of the falling white channel.  It still seems fairly likely it was just a delaying tactic, as various currency pairs, commodities and indices are sliding toward our next targets.

continued for members…

RB is slipping back toward the yellow channel backtest and CL is about to tag the white midline.

Bonds continue to signal a large move.

And, VIX seems to be coiling.

On the currency front, USDJPY remains in a holding pattern.Do TPTB really want DXY to break out?

This leaves SPX and ES in a great position to complete their patterns — starting with the .786s where their SMA200s also wait.  If those don’t hold, of course, we should get a test of SPX 2703.62 again — though there’s a H&S neckline waiting at 2722.

Note that a drop to the .786 will complete the first H&S which targets 2646 – also the gray channel bottom, the purple channel .786 line and the yellow midline.  If we get a bounce at 2722, it could generate the second H&S which targets 2486.

As always, we’ll join the algos in watching oil and gas, USDJPY and VIX for the go-ahead signal.

More later.

UPDATE:  1:15 PM

Oil and gas have tumbled nicely, pushing SPX to new lows on the day.  This is important support for CL.  If it breaks, look for a retest of the SMA200 and, if that fails, a plunge to the SMA100 at 58ish.Ditto for RB with its targets at 1.92-94 and its SMA200 at 1.77ish.USJDPY is just starting to break down.

While, VIX is just starting to break out.

It seems silly, but yes – keep an eye on SPX’s SMA5 200. I think the dam is very close to breaking on COMP.  AAPL and BA both look like they’ll break down any moment.