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.
8:35 am
Good Morning!’
SPX futures have consolidated around 7500.00, remaining above Intermediate support at 7477.00. A sell signal is positioned beneath Intermediate support with confirmation beneath the 52-day Moving Average at 7429.04. Wall Street has a busy day ahead. Today may be particularly volatile.
ZeroHedge reports, “US stocks are struggling for direction as traders waited to buy the dip on a busy day that kicked off with Wall Street earnings whichwith JPM, BofA, Goldman, Citi and Wells all reporting. Kevin Warsh’s testimony before Congress and CPI data are due later.”
The premarket VIX pulled back after testing the 52-day Moving Average at 17.41 yesterday. The bounce may see increasing strength as it probes toward the Cycle Top resistance at 25.77. The mid-summer slumber in the VIX may be broken by spikes of volatility through this week. While possibly violent, this bounce may be short-lived and difficult to trade.
The US 10-year Bond Yield has reversed down from its Cycle Top resistance, extending its Master cycle high from Wednesday to yesterday. It has created a possible aggressive sell signal in the bond yields. The 10-year yield may continue to go lower to early September as the bond market offers a potential safe haven.
ZeroHedge observes, “With oil prices having tumbled (before this latest resurgence) but semiconductor prices soaring still, expectations were for a small 0.1% MoM decline in CPI but in fact it printed dramatically cooler, dropping 0.4% MoM – the biggest monthly decline since COVID (April 2020), dragging the YoY CPI change down to +3.5% YoY…”
USD continues to consolidate near the neckline of the head & Shoulders formation. The Cycle Top offers resistance at 102.29, but the sideways action has relieved the overbought condition. The Cycles Model signals increasing trending strength that may break out by the weekend.
Bitcoin continues its consolidation beneath the 52-day Moving Average at 4811.00. It may be ready to resume its decline with increasing volatility beneath the Cycle Bottom at 64976.00.
Crude oil continues its journey higher, challenging Intermediate resistance at 80.22. A close above that level confirms the buy signal. The Cycles Model offers increasing strength over the next week. The current Master Cycle may last to mid-august.
Gold is resisting the decline as it uses 4000.00 as a support for buying the dip. It may not work. The decline may continue, as the real support for gold may be the Cycle Bottom at 3780.74.