8:10 am
Good Morning!
SPX futures declined to 6932.60 this morning, signaling a possible change in trend. Yesterday’s high marked the probable completion of a 5-Wave rally from the November 21 low at 6521.92. It also marked a 9-month rally high from April 7, 2025 to January 6-7. 2026. There may be a probe to the vicinity 6975.00 today. However, the Wave structure is complete, or nearly so. Critical support lies at 6825.00, while the 52-day Moving Average is at 6807.00.
Today’s options chain shows Max Pain at 6935.00. Long gamma begins above 69400.00 while short gamma strengthend beneath 6910.00.
ZeroHedge reports, “US equity futures are weaker but off session lows, as markets pause ahead of a series of US labor and economic data. As of 8:00am ET, S&P futures are down 0.1% as global equity markets have run into some resistance after a strong start to 2026; Nasdaq futures dip 0.2%…”
VIX futures are nudging against the trendline at 15.20. A breakout may offer a buy signal for the VIX. The Cycles Model suggests a rally to the end of January to begin the new trend. The “forever low” profile in the VIX may be identified as a part of a massive 18-month Triangle formation that may be coiled in preparation for an historically long and strong Primary Wave [C] formation.
Today is the weekly VIX options expiration. The January 14 options chain shows Max Pain at 16.00. Short gamma resides at 14.00-15.00. Long gamma begins at 17.00, but without much conviction.
TNX has declined to the Intermediate support at 41.25. However, it may have further to decline…possibly to the trendline convergence at 40.50. While it is in the reversal window, it may last for another week.
Note: I have a series of doctor appointments today. Sorry to cut things short, but may come back for comments this afternoon.