SPX futures consolidated beneath the 52-day Moving Average at 7706.00 in the overnight session. Support lies at the Ending Diagonal trendline at 7660.00. Beneath that, the sell signal may be confirmed. The subsequent support level may be found at the mid-Cycle level at 7304.68. Internally, there were 122 more new lows than new highs. The NYSE Hi-Lo Index may be set to plunge deeper by the end of the month, taking the SPX with it.
NDX futures declined to 29317.00 this morning as the rebound stopped beneath the 52-day Moving Average at 29851.97. The rebound turned into a weak retracement. Should the NDX remain above its Friday low at 29073.00, it may make a second attempt at the 52-day Moving Average. The Cycles Model implies a sideways consolidation may take place this week. The correction is already underway, with the average stock down approximately 10%. The correction may not be complete until the leaders join in a washout decline.
The premarket VIX rose to a morning high at 18.88. Yesterday it tested the trendline at 17.39 and it held. There may be some consolidation (calm?) to the end of the month. Vix may become very active in the month of November.
The US Dollar has found support at the neckline of its Head & Shoulders formation at 101.80. While this denotes a buy signal for the USD, most may wait for a breakout to buy the USD. The Cycles Model offers an intermediate level at the Cycle Top that may confirm the buy signal.
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