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.
8:30 am
Good Morning!
SPX futures retreated from the upper trendline of the Triangle formation near 7575.00 after pressing against it on Friday. The Triangle may be due for its final plunge with tail toward 7200.00 in the next week or so. Should the decline last more than a week, a panic may develop.
ZeroHedge reports, “US equity futures are lower on a combination of US/Iran escalation (which is feeding inflationary concerns) and a violent crash in South Korean stocks (which saw SK Hynix plunge by 15% overnight, the most on record, and unironically follows its record ADR launch in the US), which has put Semis and tech under renewed pressure.”
Tech futures crumbled to a morning low at 29339.70this morning. Critical support lies at the 52-day Moving Average and lower Triangle trendline at 29304.16. The Triangle formation may target 27000.00, a 10% decline from last week’s high. Damage may be extensive, since investors have piled in to leveraged products anticipating the rally to continue.
The premarket VIX reversed to 16.53, confirming Friday’s Master Cycle low. This may not be the final low. However, the Triangle formation dictates a revisit of the Cycle Top at 25.79, or possibly the upper Triangle trendline near 28.00. Analysts are noting the low price.
The US 10-year Bond Yield was resisted at the Cycle Top at 45.97 after making its Master Cycle high on Wednesday. The decline may begin with a possible burst of energy as it descends to or beneath the lower Triangle trendline near 40.30. A possible target may be the Cycle Bottom at 39.11 as investors seek a safe haven. The Cycles Model suggests the decline may last to early September.
USD emerged above the neckline of the Head & Shoulders formation. The Cycles Model suggests the rally may last to early August. Should it extend, 108.00 may be possible.
Bitcoin offers a possible sell signal as it descends beneath Intermediate support at 62706.00. The decline may open without much fanfare, but may gain momentum as it reaches its Cycle Bottom at 54968.00. The last week of July may be particularly volatile.
Crude oil is testing the mid-Cycle resistance at 75.19, having crossed above the 200-day Moving Average at 74.18 this morning. It is on a buy signal that may last to mid-August. Crude may be the recipient of trending strength for the entire duration.
Gold declined to 4044.58 this morning, possibly beginning its trek to the Cycle Bottom at 3783.86. It is due for a Master Cycle low this week, but may go lower if the Cycle extends into next week.