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.
8:45 am
Good Morning!
SPX futures rose to 6831.50 this morning after futures went dark at 9:45 pm due to a glitch at the CME. Many believe is the continuation of the rally from the November 21 low. Currently the SPX is closing at a monthly loss. There is some pressure to push the SPX above the October 31 close at 6840.00 to end the month with a gain. Earlier this week I had calculated the 7-month trendline to be near 6835.00. Today is may be closer to 6850.00, so a nudge to 6840.00 may still be beneath the trendline. Equities are still in a corrective formation and today marks the halfway point in a Trading Cycle, which allows a reversal.
Today’s options chain shows Max Pain at 6790.00. Long gamma resides above 6800.00 while short gamma lies beneath 6780.00.
ZeroHedge reports, “Update (0830ET): CME Globex Futures & Options markets have officially reopened after their overnight ‘cooling issue’. For now, Nasdaq futs are rallying…”
VIX futures bounced off the trendline to 17.49 thus far. Whether this is due to the “glitch” or simply time for a reversal is to be determined. The Cycles Model allows three weeks to rally. Today is a “Cyclical match” to the March 26 low, suggesting a rally of similar dimensions.
The December 3 options chain shows Short gamma between 15.00 and 19.00 while long gamma breaks out above 20.00.
The 10-year Treasury Note is bouncing from a morning low at 39.90 as it may resume its rally for approximately the next three weeks.