7:45 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.”
NDX futures are consolidating around the Cycle Top support/resistance at 21001.00. A close beneath that level may bring about an aggressive sell signal. An aggressive sell suggests investors lighten their long exposure. Today is day 250 of the current Master Cycle, closing in on the 1 week Cycle turn window. All eyes will be on the CPI report being released tomorrow. NDX may be the first to react to an above-expectations October CPI.
Today’s otions chain shows Max Pain at 20950.00. Long gamma may begin above 20975.00. Short gamma lies beneath 20900.00.
SPX futures are revisiting yesterday’s daytime low at 5960.08 in a consolidation. Support lies with the Cycle Top at 5950.00. Beneath that is an aggressive sell signal. Should the SPX break down, the Cycles Model suggests a decline that may last to the end of the year.
Today’s options chain shows Max Pain at 5990.00. Long gamma may begin above 6000.00 while short gamma emerges beneath 5950.00.
ZeroHedge reports, “US equity futures, and global markets dropped for the second day in a row on Wednesday as rising yields and a stronger dollar dented the euphoric sentiment behind the Trump rally, and as investors awaited key US inflation data amid concerns that Trump’s proposed America-First policies will reignite price growth. As of 8:00am S&P500 futures and Nasdaq 100 futures slipped 0.2% into the CPI print which is expected to rise for the fourth month (full preview here). Pre-mkt, Mag7 is mixed, and semis are lower; Banks, Energy, Industrials, and Healhcare are seeing a bid. Treasuries steadied after a renewed selloff Tuesday while the dollar was flat after earlier rising beyond 155 per dollar for the first time since July, raising the risk that Japan will intervene to slow the depreciation; the EURUSD briefly dropped to 1.0594 the lowest in a year. Commodities are higher led by Energy and Precious Metals. CPI and five Fed speakers are the macro focus for today as the earnings calendar thins out.”
VIX futures were hit hard by the CPI release. VIX tumbled to a new Master Cycle low this morning, on day 257 of the current Master Cycle. This may be a red herring, as the core CPI rose for the 53rd straight month and headline CPI rose, as well.
The November 20 options chain shows massive short gamma positions from 13.00 to 17.00. Max Pain may exist at 18.00. Long gamma is also building from 19.00 to 55.00.
ZeroHedge observes, “For the 53rd straight month, core consumer prices rose on a MoM basis in October with the YoY pace re-accelerating to +3.33%…”
Source: Bloomberg