Futures reached our next downside target yesterday, though two weeks later than our forecast [see: Not So Fast…] Admittedly, we heard from many naysayers back in October when we posted this chart.

And, this morning…Days like yesterday, where a 120 point overnight rally turned into a 160 point selloff, are enough to scare anybody. But, especially NY Fed President Williams who took time out of his busy schedule to remind algos that there room for “further adjustments” to interest rates.

It reminds us of James Bullard’s similar announcement in the midst of a 2014 selloff. He asserted that QE should continue because interest rates were too high (the 10Y was at 2%.)  It’s a great reminder of the Fed’s important third mandate: to prevent crashes.

continued for members...

Bears are going to need VX to break out. Looks like Trump stroked MBS well enough to keep oil/gas heading south. Selling F-35s to the Saudis…what could go wrong?

The 10Y is again on the verge of a breakdown. GLTA…