Futures tagged our white channel midline target again overnight… …before bouncing when VIX reversed for the third time at trend line resistance.Note that ES’ white channel midline was first topped back on March 25. Since then, it has been tested 12 times. Clearly, someone thinks it’s pretty important. Who am I to argue?

All I know is that with interest rates and inflation suddenly on everyone’s radar, oil and gas are out of the equity-propping game. The dollar is bouncing today, but has broken down below some very long-term trends. So, USDJPY should be of little help.

Even the Fed has watered down its enthusiasm for driving the market higher now that it’s back to February’s highs. The unspoken message to the politicians: we got it back to previous highs, it’s your turn now.

So, aside from the usual VIX games, there’s not a whole lot to propel stocks higher. So, will the midline continue to hold?

continued for members…Just a reminder, I will be out of the office most of the day today. I might get a chance to post toward the close, but it’s iffy.

Nothing has really changed since yesterday in currencies. EURUSD continues to sag back below the channel top it broke out of. This is allowing DXY to continue bouncing atop the falling red TL and is putting more pressure on GC which, for now, is holding its white TL. In addition, CL and especially RB are breaking down – a nod to the bump in rates we saw last week.

GLTA.