The algos were busy overnight, turning a 1/2% slump into a slight gain as we approach the open. But, the warning signs are building, starting with our 2s10s model. The latest breakdown is worrisome.

So is the currency picture. DXY has reached triple overhead resistance. A breakout would surprise no one given the US’ inflation problem. It’s decision time for EURUSD too.

The 10Y continues to threaten a breakout, but 4.25% in mid-July would more likely be the result of an equity correction than a sudden decline in inflation.

It’s likely to come down to CL and whether it bounces off its SMA200 or drops through it.

It’s why equity targets are all over the map.

GLTA