May 10, 2024

7:30 am

Good Morning!

NDX futures have rallied to 18208.90, a new retracement high.  Today is day 252 in the current Master Cycle.  The turn window is wide open and NDX appears to be completing its probe .  Overhead resistance is at 18336.00, which may prevent a new high from being formed.  The market is running out of shorts to squeeze.  Critical support lies at 17870.00, beneath lies a sell signal.

Today’s options chain shows Maximum Investor Pain at 18160.00.   Long gamma begins at 18200.00.  Short gamma starts at 18140.00.

ZeroHedge remarks, “An ugly jobless claims print was the day’s early catalyst sending yields significantly lower, stocks, gold, oil, and crypto higher and the dollar down with rate-cut expectations re-ignited…

Source: Bloomberg

A dovish shift supported stocks – which had a “squeezey feel” amid very low liquidity…”



SPX futures ran up to 5235.90 this morning and has since eased back.  The; Cycles Model suggests a powerful turn may be made today, near the open.  The Cycles Model suggests a rise in volatility preceding a possible turn.  Support lies at 5135.00, beneath which lies a sell signal.

Today’s op-ex shows Max Pain at 5200.00.  Long gamma becomes strong above 5225.00.  Short gamma may begin beneath 5190.00.


VIX futures rose to 12.84 this morning after making its Master Cycle low yesterday at 12.68 on day 266 of its Master Cycle.  The turn window is closing for the VIX.

The May 15 options expiration shows virtually no short gamma.  Long gamma may begin at 14.00.


TNX may continue to consolidate after making its Master Cycle low on Tuesday.  The turn window is also closing for TNX.  Look for volatility to begin rising next week.




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