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 declined to 7515.70 this morning, remaining above critisal support at 7500.00. The internals may be healing, since the NYSE Hi-Lo Index closed at its highest evel since September 2, when the markets became chaotic. Speculators are beginning to anticipate no rate hike at the next FOMC meeting while the general consensus is a 75% chance of a rate hike.
NDX futures declined to 27899.60 in the overnight session, but had risen back to a morning high at 28163.00 this morning thus far, above the mid-Cycle support/resistance level at 28141.00. This may constitute an aggressive buy signal, as the selling may have been exhausted.
ZeroHedge reports, “US futures are down but off session lows, with Nasdaq contracts edging higher, as America heads to the polls for the midterms, chips rebound even as Apple slides on a gross margin warning and Palantir tumbles on a soft outlook, and oil bounces off Monday’s 8% plunge after the US struck Iran’s Qeshm Island in what officials called a “small-scale” and “defensive” attack; as a result the oil-driven bond rally takes a breather with the 10Y yield edging up to 4.93%.”
The premarket VIX slid to a morning low at 20.52. Yesterday’s surge fell short of Friday’s high. Support lies at the mid-Cycle level at 18.35. Beneath that sell signal may be found. The Cycles Model suggests the VIX may decline into late November, potentially breaking through the Triangle trendline. The target may be the lower Trading channel trendline near 12.50.
The US 10-year Bond Yield reversed from its trendline, creating a probable Master Cycle low. While a week early from the average Master Cycle, it has met all the requirements for price. Should that be so, the new Master Cycle may begin, lasting to mid-December. What may be odd to some, both the 10-year rate and the SPX may be due to rise in tandem. A buy signal may be had above the neckine at 50.00. The 52-day Moving Average is at 50.10.
Crude Oil found support at the rising trendline at 93.70, bouncing back above the 52-day Moving Average at 94.34. The correction may be over, despite the negative price. The Cycles Model shows today as a reversal and high volatility day. The uptrend may be resuming with the Head & houlders neckline in view. Additiona confirmation of th euptrend may lie above Inteermediate resistance at 95.64.
Spot gold is consolidating near 3950.00. The neckline may be near 3975.00-3980.00, leaving the consolidation beneath it. Should it persist beneath the neckline, we may see yet another probe toward the Cycle Bottom at 3756.51.
Bitcoin may be consolidating above its Master Cycle low made on Friday at 76236.00. The Cycles Model suggests consolidation may continue until the weekend, as Trending Strength may resume over the weekend. The Cycles Model anticipate the uptrend may resume, lasting to mid-January.
The Agriculture Index plunged beneath the mid-Cycle support at 384.75, finalizing its Master Cycle low at the 61.8% Fibonacci retracement level. Today may be a high volatility reversal day.Should that occur, a buy signal may be obtained above the mid-Cycle support/resistance at 384.75. The Cycles Model anticipates a 3-4 week rally to the neckline of the Head & Shoulders formaton.