Yesterday was one of the wildest rides we’ve seen in quite some time. It won’t be the last.
ES nailed our next downside target, then did a swan dive through the bottom of the channel from 3 weeks ago, nearly tagging our 4153 target in the process before closing in the black.
With the futures off 1.5% this morning, the bumpy ride is far from over.
continued for members…The bigger picture: Note that SPX and ES’ bounces stopped short of their SMA200s.
DJI and NKD both have unfinished business.
As does VIX.
CL and RB have barely budged to the downside. 
USDJPY came close, but hasn’t quite tagged its SMA100 yet – let alone its SMA200.
EURUSD is finally just beginning to break down.
And, DXY is on the brink of a long overdue breakout. 
If you’ll remember the Fed’s whole purpose of this drill – to vanquish higher interest rates while waiting for CPI to normalize – there is still more to come. While it’s true the 10Y’s advance has been halted (for now), it isn’t even back below the neckline of its IH&S Pattern.
As scary as yesterday’s downturn was, it wasn’t sufficiently scary. More downside ahead.
