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.
9:00 am
Good Morning!
SPX continues to consolidate between 6033.00 an 6070.00. Dips are being bought, but sellers wait at the top. ASfter all this sideways motion, it would appear that the buyers may throw in the towel soon. Markets top out in exhaustion, where it takes more and more energy to accomplish less and less. January 31 has become the all-time high for the Industrials at 45045.00. SPX topped out on January 24. The NDX has made its peak on December 16 at 22133.00. The window for a possible new high is closing fast.
Today’s options chain shows Max Pain at 6050.00. Long gamma may begin above 6065.00. Short gamma lies beneath 6000.00.
ZeroHedge reports, “Futures are flat, Europe’s Stoxx 600 slipped from session highs and the euro gave up an earlier advance against the dollar sparked by hopes for a Ukraine war ceasefire, after President Donald Trump signaled he’s about to announce reciprocal tariffs on trading partners, just as we warned last night he would. As of 8:00am ET, S&P futures are down 0.1% while Nasdaq futures rise by a similar percentage even as Chinese technology stocks saw a dramatic intraday turnaround to finish lower. TSLA is up 2.2% pre-market with the rest of Mag 7 largely unchanged this morning; CSCO rose 6.8% on the back of a higher revenue forecast. Bond yields are 2-3bp lower, while the USD reversed an earlier loss. Commodities are mostly lower: WTI and aluminum are -1.5% and -0.9% lower, respectively. Today, the macro focus will be PPI and any updates on Trump’s reciprocal tariff plan which the president said in a social media post will be announced on Thursday. Futures contracts on the S&P 500 and Nasdaq 100 erased early gains, while”
VIX futures are consolidating at the lower end of its trading range (15.64-17.18) The Cycles Model shows rising strength over the next week.
The February 19 options chain shows Max Pain at 17.50. Short gamma starts beneath 17.00 while long gamma may begin above 19.00.
TNX has pulled back this morning and may test the 50-day Moving Average at 44.97. The Cycles Model suggests that TNX may resume its rally by early next week. The target for this probe higher may be the Cycle Top at 48.11.