Waiting in the Wings

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This morning feels a whole lot like yesterday morning, with futures ramping higher on the latest smackdown in VIX. Of course, these maneuvers can be an effort to force a breakout in stocks. But, they can also be an effort to put a little more air under stocks in advance of a downturn. With plenty of important earnings still to be announced, the Gazprom threat, and a potential ECB rate hike just ahead, there’s plenty or risk waiting in the wings.

continued for members…There has been little change, with the overnight ramp job largely offsetting yesterday’s sharp selloff.

VIX is on the SMA200 bubble… …with the futures also tagging the bottom of the rising white channel.EURUSD is adding to its bounce……while USDJPY is still coming off its .886 at 139.43.This leaves DXY in a slide that just reached TL support. As expected, CL and RB both reversed off their SMA10s, but they have not yet made lower lows. The net result is a continuation of TNX’s triangle, with no resolution as of yet. We haven’t talked about bonds much lately, aside from the fact that the 10Y has broken out of a forever channel and the 2s10s is inverted again.Remember, while inversions cause corrections, sharp rallies from inversions cause crashes. So far, the 2Y and 10Y have been racing each other higher. The day that the 2Y comes back to earth without the 10Y, we’ll see a very sharp downturn. GLTA