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.
8:00 am
Good Morning!
SPX futures bounced this morning after making a 35% retracement from the high. However, it has remained beneath resistance at 7700.00which may allow a dip lower. The chances of a deeper low may run out this morning, so we may not have long to wait. For example, a possible 50% retracement lies near 7560.00. Investors are “all in” as mutual fund cash is at at an all-time low. The Treasury’s ill-executed buyback scheme may need a repeat to jolt the markets higher. The Cycles Model does not show Trending Strength returning until the end of the month.
VIX is xconsolidating near the middle of its recent trading range above the lower Triangle trendline. A further decline in the SPX may push the VIX higher, as it may have the energy to rise to the Ending Diagonall trendline at 20.00.
Bitcoin rose to a morning high at 78410.00 this morning, beneath the Cycle Top resistaance at 81033.00. On Tuesday it offered a buy signal, accompanied by trending strength, and off it went, as the shorts frantically covered. The Cycles Model suggests a pullback may be in order, possibly to the mid-Cycle support at 68961.00, before a month-end burst of energy pushes it higher. The next resistance level above the Cycle Top lies at the 38.2% retracement level at 84250.00. The cycles Model sugests the trend may continue (with corrections) until the end of September.
Crude oil is consolidating above trendline support as it consolidates between moves. The next probe higher may occur next week, with strength, as it extends its rally to mid-October.
Gold is moving higher in a complex correction that may not be complete. The Cycles Model suggests a possible week of rally before resuming its decline. It has broken above its downtrend line and may extend to 4900.00.