SPX futures rose to 7838.90 thism orning, approaching it all-time high. There is no conviction here, as fewer companies participate in the rally. The Friday Hi-Lo Index closed at minus 81.00, revealing that 81 more companies on the NYSE made new lows rather than new highs. The Hi-Lo Index has not closed positive since August 28. In addition, only 182 companies out of 2800 on the NYSE closed above the 50-day Moving Average on Friday. The big attraction is still AI, but a rift may be developing between Korea’s memory chips and Taiwan’s semiconductor components. The Cycles Model suggests the end may be near.
ZeroHedge reports, “US futures are flat, with S&P contracts clinging to small gains and the Nasdaq slipping into the red as memory stocks slide, after a weekend of contradictory geopolitical headlines whipsawed oil…”
The premarket VIS climbed to 15.56 this morning as it rises above the Triangle trendline and approaches the 52-day Moving Average at 15.63. A buy signal above the 52-day may be imminent. Should that be so, the ensuing rally may last to the end of November.
The US 10-year Bond Yield futures declined to 52.25 this morning, suggesting a resumption of the corrective decline. While the normal retracement would backtrack to the Head & Shoulders neckline at 50.00, the fractal structure suggests the Cycle Top may provide support for the pullback. Stay on alert, since the Cycles Model may be offering the support level, but the timing may not be clear.
The US Dollar is consolidating above the neckline of a Head & Shoulders formation. It may test the neckline at 101.80 before rising higher. However, time is running out on this Cycle and new Trending Strength may return in just a few days.
The Euro may have reached its Master Cycle low on Wednesday, October 7. A bounce is in the works that may test the neckline at 113.25. The Cycle Bottom at 112.70 may cut the bounce short.
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