7:00 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!
SPX futures are nominally higher this morning to 6018.40 thus far. Today is day 248 in the current Master Cycle. The SPX is struggling against the 3-month trendline near 6025.00. Despite the resistance, animal spirits abound. Should it remain above it, the next resistance is the year-long trendline at 6100.00. Today is a high volatility day, which may be translated into either strength to go higher or a reversal. A swift rally such as the one experienced in the SPX last week, may be fragile and may lack staying power. An aggressive sell signal may be made beneath the Cycle Top support at 5933.00.
Today’s options chain shows Max Pain at 5980.00. Long gamma becomes strong above 6000.00 while short gamma may prevail beneath 5950.00.
VIX futures rose to 15.35 this morning after Friday’s (Master Cycle) low was made at 14.66. A rising VIX and rising equities market is an unstable combination and should be carefully monitored. The Cycles Model suggests that volatility may spike today and again by mid-week, possibly jump-starting the next move higher.
The November 20 options chain shows Max Pain at 18.00-19.00. Short gamma prevails between 13.00 and 17.00. Long gamma becomes established at 20.00 and remains strong to 55.00.
TNX futures have risen to 43.57 thus far this morning. It may be emerging from a shallow correction. If so, growing strength may propel it to a new high this week. The Cycles Model suggests rising yields through the end of the year.