The Lord’s Prayer
Our Father, who art in heaven, hallowed be thy name. Thy Kingdom come, Thy Will be done, on earth as it is in heaven. Give us this day our daily bread and forgive us our trespasses, as we forgive those who trespass against us. And lead us not into temptation, but deliver us from evil. Amen.
8:00 am
SPX futures rose to 6056.30 over the weekend in a corrective bounce on day 263 of the Master Cycle. It is likely that the Cycle Top was put in on Friday, day 260. I have repositioned the Master Cycle high to Friday, although the high was made on January 24. The SPX simply went sideways, refusing to go down for the past two weeks, closing above the 50-day Moving Average currently at 5999.63. Hedge funds are finally back as buyers instead of sellers, having thrown in the towel on their short positions. No one sees the danger of a sharp and lengthy sell-off at this time.
Today’s options chain shows Max Pain at 6050.00. Long gamma strengthens at 6100.00 while short gamma prevails beneath 6000.0.
ZeroHedge reports, “US equity futures are higher, led by Tech as investors largely ignored tariff headlines, in this case the 25% tariffs on steel/aluminum which were announced yesterday, and which will predominantly impact both Canada and Mexico. As of 8:00am ET, S&P futures are 0.5% higher, reversing half of Friday’s drop as the tariff news lifted American metals stocks, with US Steel Corp. surging as much as 15% in premarket. Alcoa Corp. rallied 5%. Nasdaq futures are up 0.6%, with Mag7 names all higher ex-TSLA with Semis and Financials catching a bid. Bond yields are mostly unchanged with USD higher. Commodities are seeing strength across the entire complex with gold’s record run continuing, now above $2900. Today’s macro data focus is on the NY Fed’s 1-year inflation expectation given the hotter print on Friday from Univ of Mich; CPI is on Weds.”
VIX futures are consolidating just above the 50-day Moving Average at 16.16. A buy signal may be imminent. The VIX “floor” is rising, giving a subtle clue of increasing strength.