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.
7:45 am
Good Morning!
SPX futures are consolidating abov ethe Cycle Top at 7788.06 after making a new all-time high and closing above Cycle Top support yesterday. It is “climbing a the wall of worry” as it refuses to correct. Should it make another new high, it may resume a steady rally to 8200.00 or higher. The Cycle Top may remain the support going forward. The prospect of a further correction is diminishimg.
ZeroHedge reports, “Futures are fractionally higher, as they have been much of this supercharged week which pushed stocks to new all tim ehighs, amid quiet news flow this morning.”
The premarket VIX xonsolidated beneath the Triangle trendline as it may test the declining tresing channel trendline beneath it. It may continue to glide/xonsolidate lower for the next week. Fear of missing out on the rally may put the VIX into a deep slumber.
The US 10-year Bond Yield is consolidating after a strong decline yesterday. The decline may resume for a few more days, as the potential target for this correction lies at the 52-day Moving Average at 45.67. However, the uptrend remains intact with potential new highs above the neckline in the next week. The small bond refundings this week may have kept the TNX from breaking out above the neckline.
Zerohedge muses, “After yesterday’s ugly 10Y auction, moments ago we got the last of the week’s refunding auctions, when the Treasury sold $25BN in 30Y paper (the same paper that has seen yield shoot up in the past week, ever since Warsh’s most recent FOMC meeting in which he left the long-end hang out to dry), and just like the 10Y auction before it, this one was also rather deplorable.”
Crude oil rose to 82.99 thiks morning after testing the 52-day Moving Average at 80.10. The minor correction may be over and WTI may be capable of soaring higher. A breakout above its prior high sets the Cycle Top at 110.56 as a potential target.
Gold has come off the top of its “tail” and may be due to resume its decline. Not all Triangle formations produce “tails,” but when they do the result is a rogue fractal that misleads the crowd. The next four weeks may bring new lows.