Good morning, everyone. Since evidently there’s no multi-month revision to faulty government data this morning, the markets are mellow and borderline boring. The /NQ had a tremendous surge yesterday, surpassing even the peak witnessed last week with the Nvidia blowout earnings.
![](https://slopeofhope.com/wp-content/uploads/2023/08/nqtop-640x383.png)
The small caps formed an inverted H&S pattern and zipped higher. THey will need to slip below this pattern level to neutralize it.
![](https://slopeofhope.com/wp-content/uploads/2023/08/rtyy-640x428.png)
Looking at the bigger picture on the /ES futures, the Fibonacci resistance is as plain as day. It’s important we do not exceed the level I’ve circled.
![](https://slopeofhope.com/wp-content/uploads/2023/08/esfub-640x314.png)
As for the bonds, whose renewed weakness are key to the potential for bearish equities, they are still engaged in a clean series of lower lows and lower highs. Yesterday didn’t change any of that.
![](https://slopeofhope.com/wp-content/uploads/2023/08/zb-1-640x352.png)
Finally, and not at all a surprise, volatility has been smothered to death in its crib. We’ve gone from the 30s to almost the sub-teens. It’s just breathtaking, and if we DO get a real diminishment in stock prices in the weeks ahead, this could be an amazing bargain at these levels.
![](https://slopeofhope.com/wp-content/uploads/2023/08/vix-640x513.png)
It’s good to be home!