SPX futures rose to 7541.20, but did not exceed the prior futures high at 7555.00. From there it swung down to 7489.70, consolidating near 7500.00. The upside is now grinding gears in an effort to maintain momentum. The sideways move in the past two days suggests the crowd has already made its move. this is not a good sign. The uncertainty being shown here can easily turn into a rout. The Cycles Model suggests the SPX may go higher but possibly with a change in leadership as a correction may be due. The uptrend may not be over, but the easy profits may be behind us.
Today’s options chain shows Max Pain at 7520.00. Long gamma resides above 7530.00 while short gamma dwells beneath 7500.00.
The premarket VIX may be consolidating inside yesterday’s trading range. The Master Cycle may have been spent as of yesterday. The VIX may no longer be “mopping the floor” as a panic Cycle may be brewing next week. Hedge now while you still can do so cheaply.
The June 2 options chain shows virtually no short gamma. Long gamma rests from 17.00 to 30.00, with an outlier at 55.00.
The USD made a nominal breakout this morning, but retreated back inside its trading range. It may pull back to its 52-day Moving Average at 98.95 before moving higher. The Cycles Model suggests a possible panic rally into next week that may exceed the Head & Shoulders neckline.
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