August 1, 2022

2:03 pm

SPX appears to be consolidating near its high.  It may still have yet another probe as high at 4225.00. the 50% retracement of the decline from January 4 to June 17.  Today is day 60 from the June 2 high, an inverted Trading Cycle (60 days).  It is also day 252 in the Master Cycle.  VIX has made a reversal from Friday’s low, so we may see the SPX reversal in the next few days.  VIX reversals often lead equity reversals by several days.  Current resistance is at the 100-day Moving Average at 4121.40.

Today’s op-ex shows Max Pain at 4095.00.  Calls rule above 4100.00 with long gamma at 4120.00.  Short gamma starts at 4025.00.

 

7:05 am  I will be taking my wife in for minor surgery this morning.  Please excuse the absence until later this morning or afternoon.

SPX futures are in a shallow pullback.  This may develop into something deeper, but the likelihood is strong that there may be a final push higher to reach the trendline above 4200.00.  The 50% retracement is at 4225.00.  Today is day 252 of the Master Cycle.  There is a potential for another week of rally.

 

VIX futures have reversed off Friday’s low in what may be a Master Cycle reversal.  Friday was day 258, so this may be a new trend forming.  VIX may temporarily go higher while SPX is still climbing.  No signal yet.

 

 

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1 Response to August 1, 2022

  1. Greetings! Very useful advice within this article! It is the little changes that produce the most significant changes. Thanks for sharing!

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