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.
The Feast of Our Lady of Guadalupe
11:04 am
SPX has declined beneath the December trendline at 6827.00, creating a potential aggressive sell signal. An aggressive signal comes with possible bounces back above the trendline, but is more likely than not to be a valid signal. The signal may be confirmed beneath Intermediate support at 6791.13 with additional confirmation beneath the 52-day Moving Average at 6763.82. Take appropriate action.
ZeroHedge remarks, “The fecal matter was already starting ti strike the rotating object following Broadcom’s disappointing results last night, but the bottom just dropped out of stocks (and crypto) as the following headline hit the Bloomberg screens:
- *SOME ORACLE DATA CENTERS FOR OPENAI DELAYED TO 2028 FROM 2027″
9:30 am
Good Morning!
SPX futures rose to 6911.80 this morning, making a new retracement high, but not a new ATH. The cash market high remains at 6903.46. The main view of this action is that the SPX may very soon break down to challenge the neckline of the Head and Shoulder formation at 6521.92. Crossing beneath the neckline may lead to a further decline to the 1987 trendline near 6000.00. The alternate view is that a new all-time-high may be made within the week, negating the Head & Shoulders formation, followed by a major reversal in the following week. The Cycles Model suggests a possible triple panic threat emerging next week with a potential of follow-through during January. An aggressive sell signal may be given beneath 6827.00.
Today’s options chain shows Max Pain at 6875.00. Long gamma may strengthen above 6880.00 while short gamma resides beneath 6850.00.
ZeroHedge reports, “US equity futures are mixed; with small caps higher and tech stocks lagging. As of 8:15am ET, S&P 500 futures fall 0.1% after hitting a fresh record high yesterday; Nasdaq 100 contracts -0.5% amid signs of rotation out of tech as the equity rally broadens…”
VIX came off its possible Master Cycle low this morning, but has not crossed above the first resistance at the trendline, near 16.30. Should the VIX complete a reversal. the new Master Cycle may last until the end of January.
The December 17 options chain shows Max Pain at 19.50. Short gamma resides between 14.00 and 19.00. Long gamma becomes strong above 20.00 and shows institutional presence every 5 points up to 100.00.
10-year Treasury bond yields rose to 42.01, just short of a breakout this morning. The Cycles Model may give TNX the opportunity of a spike rally this next week to finish off the current Master Cycle. Should TNX make a deeper retracement low, the alternate view is to reach the Cycle Top at 45.50 by mid-January.