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.
9:05 am
Good Morning!
SPX futures rose to 7539.60 this morning, on its way to new highs. It has risen above the 52-day Moving Average at 7467.93 on Friday, creating a buy signal. Trending strength returns this week as confidence grows. The next hurdle for the rally may be the Cycle Top resistance at 7690.73. The fractal structure allows a long-lived rally. 8600.00 is possible.
ZeroHedge reports, “Futures are higher with both tech and small caps outperforming as Trump points to a deal/advanded discussions with Iran (which Iran is naturally denying), which is helping push energy prices and bond yields lower as the USD depreciates.”
The premarket VIX is hovering near Friday’s close. The VIX ix on a sell signaland may be destined to create a very large tail beneath the Triangle formation. VIX appears to be calming down, after the bloodletting in the leveraged ETF products.
The US 10-year bond yield has come down from Friday’s high above the neckline of the Head & Shoulders formation. However, it is testing the support of the Cycle Top at 46.74. Should it close above it, the rally may remain intact. The Cycles Model infers a higher than usual volatility in the next day or so followed by an increasing trending strength that may last to early September.
The US Dollar may have hit its Master cycle low this morning as it bounces near it 200-day Moving Average at 99.16. There may be room for a probe lower, but the fractal structure may be complete. In the meantime, formation analysis shows the neckline of the Head & Shoulders needed to be moved to the June 24 high. The uptrend remains intact along with a buy signal. The Cycles Model indictes the return of trending strength later this week
Bitcoin has been busy this morning. I may have made its Master Cycle low over the weekend and is now challenging the 52-day Moving average at 63370.00. However, we must wait for the dust to settle before commiting to the upside. A close above the 52-day may offer an aggressive buy signal.
Crude oil declined this morning, remaining above Intermediate support at 77.03 and the 200-day Moving Average at 75.82. The Cycles Model suggests another possible week of decline with a target near 70.00.
Gold futures have becoms increasingly compressed within the Triangle formation. Gold may show an increasing strength as it breaks down over the next few days.