The week is kicking off with a 75-pt ramp job from yesterday’s lows and will feature both a Fed meeting and OPEX. Oh, and VIX gapped down last night. What could go wrong?

continued for members…

With ES sitting at the top of a well-formed falling channel, it wouldn’t take much to break out from the downtrend from Sep 2 (though we’ve seen the three prior ramp jobs break down.) From the bulls’ standpoint, a continued rise is necessary to unwind the bearish 10/20 cross which will otherwise happen today.

SPX will break out on the open (though its channel isn’t anywhere near as well-formed.)

VIX gapped lower and is off over 10% from Friday’s highs…

…though the white dashed midline has provided important support and resistance in the past.CL is off, but is also tagging a little TL off last week’s lows. We’ve seen it reverse on lesser grounds.Note that the SMA100 has provided strong support so far. Likewise, RB is testing important support yet again. On the currency front, USDJPY is off but has yet to see its bearish 10/20 cross reassert itself. It should happen today.EURUSD is threatening (for the thousandth time) to break out even as it experiences a 10/20 bearish cross……and DXY reversed as expected, backtesting the SMA10 and SMA20 – which are considering a bullish cross.

If our TNX forecast is correct, it should break back through both moving averages.I have several conference calls this morning, so will check back in midday.

UPDATE:  1:00 PM

We’ve seen this movie so many times before… ramp job, pinned at the highs of the day on nothing at all. Note how many of these 10/20 crosses are still up in the air.  Remember, the thin red line is the SMA10 and the white is the SMA20.

VIX continues to rule the roost, which a 34% decline now since its Sep 4 highs. It is resting atop the SMA20 and SMA50 – the last moving average support it has.For those who don’t know, I had another knee surgery last week. I’m a little under the weather, so plan on taking the afternoon off. I’ll post later after the close if there’s anything new to report.

GLTA.