The Case-Shiller Home Price index rose 12% YoY – the fastest pace since February 2006 – meaning even fewer Americans have a shot at purchasing or renting a house. Ironically, the burden falls mostly on the low-income families that the Fed claims to be most concerned about. Thank goodness we don’t have an inflation problem.

In unrelated news (not), futures notched a new all-time high overnight and have essentially busted the little H&S Pattern that might have resulted in a massive (sarc) 1.8% selloff.

continued for members…

The equity picture…

The daily VIX “breakdown” below the channel bottom and SMA10… …and the daily USDJPY “recovery”…

…accompanied by CL/RB “recoveries” which have yet to break above their SMA10s.

It’s obviously hard to be bearish when the market creeps a little higher every day.  The bearish chart signs are all there, including perennial high flyers like the Dow and Nikkei. But, it won’t happen as long as VIX can be hammered a little lower and USDJPY/CL/RB can be propped up.

It’s certainly normal for stocks to levitate going into a Fed meeting – even one like this one where the Fed is IMO behind the curve and should be tapering. But, this one is hard to stomach, as anyone could see it coming.

The bond market, for instance, continues to completely ignore the writing on the wall.

And, while GC and SI haven’t broken down, they’re acting as though inflation is non-existent.