Futures are off modestly this morning as the 10Y approaches our next downside target: a backtest of both its decades old falling price channel and the rising channel from its 2020 lows.

continued for members…The other important backtest happening this morning is VIX’s backtest of its SMA200. While VIX has opened above its SMA10 – the first time since July 12 – it must push through the SMA200 if bears are going to have any chance at all. A pullback would leave the bears hanging yet again..

Currencies have continued their moves from yesterday, with USJPDY sliding enough to put NKD’s breakout at risk… …and EURUSD hinting at a reversal.

GC looks to be completing its backtest of the purple TL and SMA50… …while SI has pushed past its TL to reach its SMA50……and BTC is testing its own SMA200.While oil and gas are both up slightly on the day, they are both back in their falling channels and positioned for lower prices as shown. This leaves the 10Y with less support, as shown up top. But, note that the spread between the 10Y and 2Y might be maxing out.

Remember, it’s the unwinding of the inversion that does the most damage to stocks.Stay tuned.