June 24, 2022

7:50 am

Good Morning!

I am giving a shortened report this morning due to an outside commitment that may take the rest of the morning.

SPX futures made a morning high of 3831.70, short of the June 15 high of 3837.56.  A higher  probe may change the outlook, but the Cycles Model suggests the turn may come in the first hour of the day.  We may know very soon.  Please recall that today’s op-ex turns short beneath 3750.00 and short gamma may begin beneath 3700.00.  This is a close call, but I’m sticking with it.

ZeroHedge reports, “Futures are pointing to solid close to the week – now that a recession and earlier rate cuts are assured…

…. with a continuation of the rally which has pushed stocks to two week highs, with Tech continuing to lead while Chinese Tech is helping to fuel the global risk-on rally to end the week. Tech-heavy Nasdaq 100 futures added 1% while contracts on the S&P 500 gained 0.9%, trading near session highs  at 3,833 after the main US stock gauge closed near session highs Thursday, adding more than 3% in three days. In Europe, the Stoxx Europe 600 rose 1.5%, with the benchmark set for a small bounce this week. 10-year Treasury yields rose to 3.13% after earlier sliding as low as 3.04%.



VIX futures made a marginal new low at 28.58, challenging the 50-day Moving Average at 28.70.  It may briefly go lower, as a “flat” correction lies at 27.76.  VIX  may have up to 3 more days to complete its rally to the Head & Shoulders neckline before pulling back.


TNX futures bounced off Intermediate-term support at 30.12 to a morning high of 31.30.  However, it is due for a Master Cycle low in the second week of June, where it may hit mid-Cycle support currently at 20.99.




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