I can’t remember a time in the last 40 years when the market was turned on its head like this. Not surprisingly, futures have been all over the map as bulls and bears try to establish beachheads and central bankers try to figure out who the good guys and the bad guys are – and what to do about it. Short-sellers as victims?  Who would have thunk it?

continued for members…

The bigger picture still shows a potential H&S Pattern targeting my favored downside target of 3540ish.

As usual, VIX is playing a very important role. Can it remain above the yellow dashed TL (31.60) it has backtested?

It has obviously broken out of the falling white channel – but broke back in the next day. USDJPY has spurted even higher to try and moderate stocks’ downside. But, as we’ve often discussed, this can only go on so long in the face of rising oil/gas prices. Yesterday we discussed the attention SLV has attracted from the Reddit crowd. SI continues to push higher, testing the white channel midline which has been so important in the past. GC is even threatening a breakout.This is in direct opposition to the correlation it has shared with ZN. One more oddity to sort out.The Fed is falling back on its favorite fully disclosed trick – selling bonds to drive yields higher. It usually supports stocks pretty well. But, of course, at some point the reflation trade will flip from bullish to bearish.

We know that that flip will occur between now and the end of March. Presumably, it won’t happen all at once. But, the way the market is trading lately…Last, an update on RSP – the chart that inspired our most recent short call. While it tagged its SMA50, it has yet to reach the TL from last March, let alone its Feb high.

As long as we’re checking out crazy charts, take a look at BTC. Elon Musk just killed off our falling channel.

UPDATE:  12:40 PM

Here we go…  We still have that support at the .618 at 3697, then a long way down.

From SPX’s standpoint, the 1.272 and SMA50 have been backtested. The bulls really need them to hold.