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.
7:30 am
Good Morning!
SPX futures made a weaker retracement to 6729.00 this morning before returning to yesterday’s close. The Cycles Model suggests, not only a loss of bullish energy, but an imminent increase in volatility/trending strength that may solidify the downturn. The Ending Diagonal trendline is near 6675.00 today and crossing beneath it may invoke an aggressive sell signal. Intermediate support lies at 6571.86 and the 50-day Moving Average is at 6505.79 beneath which the sell signal is confirmed. The Cycles Model also infers the decline may last through early November, so this should be taken seriously.
ZeroHedge reports, “utures are higher again, reversing Tuesday’s modest Oracle-led decline, and are led by small caps despite additional multi billion tech investment headlines. As of 8:00am ET, S&P 500 futures were 0.1% higher, set for their 8th gain in the past 9 days, with Nasdaq 100 contacts +0.2% with Mag7, Semis, and AI-themed plays all rallying off the investment news.’
VIX futures have pulled back modestly from yesterday’s high. A breakout above the upper trendline and Intermediate resistance at 19.36 may be imminent. The Cycles Model suggests a directional change may be imminent.
TNX continues its corrective decline toward the Cycle Bottom near 40.33. There are about two weeks left in the current Master Cycle and the fractal structure allows a possible deeper decline. The Treasury auction schedule includes the sale of $39 billion of 10-year notes today, which may confirm the dip in yields.
USD futures have broken out above the trendline near 88.75. However, the Cycles Model suggests the breakout may be short-lived and may be indicating a potential pullback, which may give some relief to the dollar shorts.
Bitcoin has bounced from its Monday low at 120661.00. in a bounce that may retake a fraction of the decline. Further downside may be indicated. A potential target may be Intermediate support at 115538.00.