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 declined overnight to 7462.40, then rose back ab ove the 7500.00 trendline to a morning high at 7659.30. The threefold test of the trendline offers a possible aggressive buy signal above 7500.00. The Cycle Top is currently at 8120.00. The upper trendline target at 8265.00 may be reached by mid-December. There may be a cup-with-handle formation that may target 8600.00-8800.00 in early 2027.
NDX futures are consolidating near Monday’s Master Cycle low after diving to 27492.00 in the overnight session. A rise above the mid-Cycle support/resistance at 28157.00 offers a possible aggressive buy signal. Further confirmation may be available above the 52-day Moving Average at 29730.00. The NDX may be making a capitulation low, setting it up for a terrific short squeeze.
ZeroHedge reports, “Last night, America’s voters handed Trump the biggest midterm rebuke in a generation.
Then, a few hours later, Wall Street shrugged it off. Nasdaq futures, which had crashed as much as 2.4% as the blue wave turned into a tsunami, were up 0.9% by morning in New York, having ripped 929 points off the overnight lows. ”
The premarket VIX plummeted back down to an overnight low at 18.03 before bouncing back above the mid-Cycle support/resistance at 18.36. The VIX may calmly decline to the middle of the month, after which the decline may become more forceful.
The US Dollar declined toward the 52-day Moving Average at 100.88 in what may be its final corrective probe. Should it complete its decline to the 52-day and reverse, an aggressive buy signal may be obtained. Otherwise, a rally back above the Intermediate resistance at 101.71 amy confirm the buy signal. The Cycles Model suggests there may be another week of decline or consolidaton before a reversal may be made.
The Euro rose to 112.73 this morning, remaining above its Cycle Bottom support at 111.77. However, the correction may be complete, allowing the decline to resume. A decline beneath the Cycle Bottom earns a possible sell signal that may be confirmed beneath the Head & Shoulders neckline at 111.05.
The US 10-year Bond Yield may be consolidating above the rising trendline, but beneath the neckline of the Head & Shoulders formaton at 50.00. The Cycles Model considers a contiued sideways trip until the weekend, when Trending Strength returns.
Crude oil continues its decline beneath the 52-day Moving Average at 94.49. It may have elected to finish the decline near the mid-Cycle support at 88.64, near the 200-day Moving Average at 86.71. The correction may be completed soon, as trendling strength may return over the weekend.
Spot gold rallied this morningposibly on the news of the mid-term elections, but also because it was due for a correction after Monday’s Master Cycle low. The Head & Shoulders formation may undergo a slight alteration, as Monday’s low may be the nexus for the neckline as well.