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 over the weekend to 6319.10, then bounced to 6434.40 this morning. Overhead resistance begins at 6475.00 as shorts are covered and the dealers try to regain control. However, the next few days are both high strength and high volatility days. The options market is becoming contentious.
Today’s options chain shows Max Pain at 6470.00. Long gamma may begin above 6475.00 while short gamma rules beneath 6450.00.
ZeroHedge reports, “Futures are higher despite continued Iran war escalation which pushed Brent higher by around 2%…”
The premarket VIX is consolidating in the upper range of Friday’s rally. Trending strength is due for a comeback with the neckline of the Head & Shoulders formation in view.
The April 1 options chain shows short gamma moving up to 20.00-27.00. Long gamma begins at 28.00 and runs heavy to 40.00-50.00.
The US 10-year Bond Yield has pulled back from the neckline of the new Head & Shoulders formation, completing a Master Cycle. The correction may take up to 2 weeks, with the upper trendline of the multi-year Triangle formation as a probable target.
The USD is testing its Cycle Top at 100.32 this morning as it approaches the neckline of a potential Head & Shoulders formation. Today happens to be a day of strength, which may power the USD through the neckline. The Cycles Model suggests the rally may last another three weeks, causing the dollar shorts significant pain as the dollar breaks above the neckline.
Bitcoin found support at 65000.00 after its rout on Friday and may be testing its 52-day Moving Average at 68786.00 today. The retracement may take less than a week, as bitcoin may be due for a further decline by the weekend. The decline may resume to the end of April before support may be found.
Crude oil rose to a weekend high at 103.37 before pulling away. This week may be due for either a sideways consolidation or a decline toward the 52-day Moving Average at 73.55. Volatility may pick up during the week of April 6.