8:15 am 2 Chronicles 7:14
“If my people, which are called by my name, shall humble themselves, and pray, and seek face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sins, and will heal their land.”
Good Morning!
NDX futures have risen to 18720.00 this morning. Confidence in equities is rising again with the proportion of US household owning equities nearing its all-time high, last seen in 2021. In addition, the corporate buyback window is open and flush with cash.
Today’s options chain shows short gamma beneath 18600.00.
SPX futures hit a high of 5376.00 this morning, approaching short-term resistance at 5390.00. The saying that, “The arket climbs a wall of worry.” is relevant here, as investors are still licking their wounds from a week ago. The Cycles Model suggests a choppy but rising market for the next three weeks.
Today’s options chain shows Max Pain at 5365.00. Long gamma may begin at 5390.00 while short gamma may start beneath 5350.00.
ZeroHedge reports, “US futures are slightly higher, although well off session highs following disappointing guidance from Home Depot while rising tension in the Middle East weighed on risk appetite. Tech leads modest gains as we receive the first batch of the week’s macro data today when PPI drops at 830am ET. As of 7:45am ET, S&P futures are 0.2% higher, paring a gain of 0.5%, after yesterday’s flat close on Wall Street; Nasdaq futs are up 0.3% with NVDA rising 1.5% as Mag7 are all higher and Semis catch a bid, following yesterday’s outperformance. European markets are lower even as Asian stocks erased last week’s sharp declines led by a bounce in Japan thanks to a drop in the yen. Bond yields are 1-2bps higher which is boosting the USD. Commodities are mostly lower with WTI reversing losses to trade around $80 and Brent at $82 as the US sees an Iranian attack against Israel as increasingly likely; Ags/Precious metals are under pressure. Fed’s Bostic speaks today, and disappointing earnings from HS may shape the market narrative. Tomorrow’s CPI and Thurs’ Retail Sales are the key catalysts.
VIX futures declined to 19.57 this morning. It is due to go lower. The 50-day Moving Average at 15.57 may be the target for this decline.