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!
This morning’s SPX futures declined to 7643.60 thus far, raising the caution level. While the Intermediate support for the SPX may be valid, the trendline may not. True support lies at 7611.00. Should the SPX venture beneath it, a larger decline may ensue. However, the fractal may yet be incomplete, allowing another probe higher to the Cycle Top at 7916.71, or higher. Should that level hold, SPX may imminently receive a burst of energy that may send it higher. This market isn’t giving away any of its secrets, making it a difficult one to follow.
The premarket VIX rose to 16.55, short of a breakout at 16.82. VIX may also be short of completion, with another potential decline ahead.
The US 10-year Bond Yield is also edging higher, to 48.14 thus far. It may be due for a reversal imminently. Let’s see what Bessent and Warsh may have up their sleeve.
I have a busy day of appointments ahead. I may attempt to come back to the blog later this afternoon.
The Yen Broke above its Cycle Top resistance at 65.04 and appears to have stopped for the time being. Should the Yen pull back, it may have left a Head & Shoulders formation projecting further gains. Thus far the Yen has appreciated over 7% from its July low. It is likely that there is at least one hedge fund in the Yen Carry trade that may be taken out on a stretcher. This move has some far-reaching effects on world liquidity, including our own. The Yen carry is basically a short on the Yen.
ZeroHedge observes, “US Treasury Secretary went full judge, jury, and executioner on speculative yen shorts overnight with probably the most direct explicit jawboning we have seen in years…”