Yes, it was way overdone. And, yes, it was the VIX action we had highlighted.  Specifically, it was VIX’s 16% “breakdown” from Tuesday’s highs that sent the algos into a frenzy.

Unfortunately for the bulls, ES was driven right into overhead resistance.

continued for members…

The falling red channel works for both ES and SPX. As a corrective wave in the rising purple channel, it implies a mild selloff. But, of course, it could still be the start of something bigger and expand to allow a drop through the purple channel bottom to lower lows around June 22. While EURUSD is hanging on to recent gains……USDJPY is popping on news that the BoJ intends to keep debasing the yen……because, stocks of course. The yen carry trade continues to pay dividends for the NKD. And, nothing else matters to the BoJ.  Some day…

This leaves the DXY with slight gains and another day of not breaking down.Though CL and RB are enjoying a small bounce this morning…

…TNX is backing off after testing its SMA200.